Michael McCroskey's questions to Allient Inc (ALNT) leadership • Q3 2024
Question
Michael McCroskey of Principal Securities, Inc. asked for the rationale behind the amended credit facility covenants, the timing of the negotiations, and management's comfort level with the new leverage limits given the current market uncertainty.
Answer
James Michaud, CFO, explained the covenant amendment was a proactive measure to ensure financial flexibility amid macroeconomic uncertainties, allowing the company to execute its reorganization strategy without constraint. Richard Warzala, Chairman, President and CEO, added that a crucial part of the new agreement was the ability to get credit for up to $4 million in restructuring costs, which was not previously allowed. Michaud affirmed they have sufficient cushion and do not anticipate testing the new covenant limits significantly.