Remy International, Inc. (“Remy International” or the “Company”), has recently announced the closing of the sale of its light and medium truck diesel engine and component remanufacturing business (the “Business”) conducted by Franklin Power Products, Inc. and International Fuel Systems, Inc. to Caterpillar Inc. Total cash proceeds were $153.2 million, including $3.2 million of an estimated post-closing purchase price adjustment. The Company does not anticipate the purchase price will change materially when final post-closing adjustments are determined.

As previously announced, Remy International amended its senior secured revolving credit and term loan facility (the “Senior Credit Facility”) to effectuate the sale. Under the terms of the amendment, the first $50 million of proceeds from the transaction have been deposited in a restricted account, pledged as collateral to the Company’s lenders under the Senior Credit Facility and available for withdrawal only with the required consent of senior lenders. $7.8 million of the proceeds were retained by the Company to pay certain expenses related to the transaction and make a required distribution of available cash to a joint venture partner of the Business. The remaining $95.4 million was used to repay outstanding revolver borrowings under the Senior Credit Facility. As also announced previously, the revolving portion of the senior credit facility was permanently reduced by $40 million, from $160 million to $120 million. The Company estimates its liquidity to be $98.2 million, consisting of unrestricted cash and cash equivalents of $22.7 million and permitted availability under the Company’s revolving credit facility of approximately $75.5 million as of the closing date and after application of sale proceeds described above.

Rothschild Inc. is assisting the Company in exploring strategic alternatives to delever its balance sheet and enhance its liquidity position, which continues to be affected by debt service and other requirements and automotive industry pressures.

About Remy International, Inc.
Remy International, Inc., headquartered in Anderson, Indiana, is a leading manufacturer, remanufacturer and distributor of Delco Remy brand heavy-duty systems and Remy brand starters and alternators, diesel engines, locomotive products and hybrid power technology. The Company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications.