Brunswick Secures $650 Million Revolving Credit Facility
LAKE FOREST, Ill. — Brunswick Corp. has entered into a new five-year $650 million revolving credit facility agreement, which replaces a $350 million facility that was due to expire in November, the company said in a press release today.
“This increased capacity reflects the significant growth in the company’s business over the past several years and our desire to maintain liquidity sources at appropriate levels,” said George W. Buckley, Brunswick chairman and chief executive officer. “Coupled with our strong balance sheet, this facility provides us with the flexibility to continue to invest in our businesses, consider acquisitions and address other general corporate purposes.”
The $650 million credit facility agreement is with a group of financial institutions led by J.P. Morgan Securities Inc. and RBS Securities Corporation.
Earlier this week, Brunswick’s board of directors authorized the discretionary repurchase of up to $200 million of the company’s outstanding common stock. Based on market conditions, share repurchases will be made from time-to-time in the open market or through privately negotiated transactions, Brunswick said in a press release.
“The success of our customer-led strategy, combined with our emphasis on operational excellence and financial discipline, have produced substantial and improving returns for our shareowners these past few years,” said Buckley. “The authorization for the repurchase of common stock reflects our confidence in Brunswick’s future prospects. It also allows us another means for returning capital to shareholders over the coming years.”
“For the foreseeable future, strategic acquisitions and developing new products will continue to be the thrust of our reinvestment of free cash flow. However, we will balance such opportunities with the repurchase of our stock, always with the objective of enhancing shareholder value.”
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