LAKE FOREST, Ill., - Brunswick Corporation reported today that it has entered into a new $300 million revolving credit facility.
The facility replaces the company's existing $400 million revolving credit facility and $100 million Mercury Marine receivables facility. There were no loan borrowings outstanding under either of these facilities. As of Dec. 31, the company had $71 million of letters of credit outstanding under its revolving credit facility. The new facility has a term of five years.
"The Company believes the new facility provides adequate levels of credit availability and supplements its current strong cash position," Brunswick said in a statement. "Additionally, the facility provides improved terms and conditions that enhance the company's overall financial flexibility and lower its interest costs."
The available borrowing capacity under the new facility is a function of its borrowing base, less the amount of outstanding letters of credit. The borrowing base reflects a portion of the value of eligible accounts receivable and inventory of certain of the company's domestic subsidiaries. Although the commitments under the current facilities have been reduced from $500 million to $300 million under the new facility, the company's available borrowing capacity, based on the borrowing base under the new facility, is expected to be comparable to the amounts that were available under the previous facilities.
The new facility was led by J.P. Morgan Securities LLC, with Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Capital Finance LLC also serving as joint lead arrangers.
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