Manitou announced that its subsidiary, Gehl Company, has entered into an amendment of its bank credit agreement allowing continued borrowing for the next 24 months. Gehl's amended credit agreement with its U.S. bank lenders provides for a total credit commitment of $105 million and a term of 24 months.
This agreement includes two separate credit facilities:
A revolving line for $80 million based on the company's North American inventories and accounts receivable maturing on June 26, 2011.
A term loan of $25 million payable in quarterly installments through June 26, 2011.
As part of the amended credit agreement, Gehl has granted to its bank lenders a security interest in all of its North American assets. The amended credit agreement replaces the company's October 2006 $125 million unsecured credit facility.
The amended credit agreement addresses all matters that gave rise to the forbearance agreement into which the company entered with its U.S. bank lenders on April 16, 2009. Gehl has significantly reduced its outstanding borrowing using operating cash flows created in part by the cost savings initiatives implemented over the past months. |
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