U.S. Department of the Treasury: Timco Engine Center, "Transaction Summary"

Summary

This Treasury transaction summary covers a loan totaling $8.4 million to Timco Engine Center, Inc., a wholly owned subsidiary of Oscoda Engine Services Corp., made pursuant to section 4003(b)(1) of the CARES Act. The Company is a repair station that had approximately 25 U.S. employees in March 2020. Collateral consists of engines and spare parts, accounts receivable, ground support equipment, and tooling and inventory. The loan carries LIBOR plus 3.5% interest, matures on November 5, 2025 and allows a single draw through November 19, 2020, and Treasury will receive 3% payment-in-kind annual interest under section 4003(d).

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“U.S. Department of the Treasury: Timco Engine Center, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-timco-engine-center-transaction-summary-b4bfceca7b/, SHA-256 fb831a7234f7b96f208d9b2b7690a28c7041c47ddf0e5a6e5f4d816d1b98d558.

Full text

                                    Transaction Summary

Treasury agreed to make a loan totaling $8.4 million to Timco Engine Center, Inc. (the
Company), a wholly owned subsidiary of Oscoda Engine Services Corp. The Company is a
repair station with approximately 25 U.S. employees in March 2020.

Treasury made the loan pursuant to section 4003(b)(1) of the Coronavirus Aid, Relief, and
Economic Security (CARES) Act. The loan is secured by engines and spare parts, accounts
receivable, ground support equipment, and tooling and inventory. The loan has an interest rate
equal to LIBOR plus 3.5% and matures on November 5, 2025. The Company may draw the loan
proceeds in a single draw through November 19, 2020. The loan proceeds will be used to
provide liquidity to continue the Company’s operations. The transaction agreement includes
covenants by the Company to comply with certain restrictions on employee compensation, stock
repurchases, dividends, and reductions in employment levels, as required by the CARES Act.
The loan constitutes senior indebtedness of the Company, and Treasury will receive 3%
payment-in-kind annual interest on the loan in accordance with section 4003(d) of the CARES
Act.

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Our copy: TREAS-Timco-Engine-Center-Transaction-Summary.pdf
Original: home.treasury.gov