Gentherm secures $550M revolver to back $1B Modine tie-up
What's the deal? GenthermDealroom has a profile for this one. Try Dealroom → has entered into a $550 million secured five-year revolving credit facility, led by Bank of AmericaDealroom has a profile for this one. Try Dealroom → as administrative agent, swing line lender and L/C issuer. The Third Amended and Restated Credit Agreement replaces the company's June 2022 facility and covers Gentherm and subsidiaries including Gentherm Medical, Gentherm GmbH, and Gentherm Präzision SE.
The details: The revolver includes a $50 million sublimit for swing line loans and a $30 million sublimit for letters of credit. Borrowings carry interest at benchmark rates such as term SOFR, EURIBOR or SONIA, plus a margin of 1.125% to 2.000%, depending on Gentherm's net leverage ratio.
Why now? The facility lands as Gentherm prepares to close its roughly $1.0 billion Reverse Morris Trust combination with ModineDealroom has a profile for this one. Try Dealroom →'s Performance Technologies business, announced in mid-2026. The expanded revolver appears designed to provide working capital and transaction backstop capacity tied to that deal.
What's the endgame? The Modine tie-up would create a scaled thermal management player, with Gentherm and Modine shareholders owning 60% and 40% of the combined company, respectively. Modine is expected to receive a $210 million cash distribution, and its shareholders about $790 million in Gentherm stock.
The context: Gentherm has also pointed to commercial momentum, citing $395 million of new automotive awards across regions and products. That backlog underscores the case for larger, more flexible liquidity.
The signal: This is enabling capital rather than a standalone financing event. By securing a bigger multi-year revolver ahead of closing, Gentherm is building the balance-sheet capacity needed to absorb a transformational acquisition and fund growth in automotive thermal management.
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Image credit: M McBey
