GE Hikes Borrowing Capacity of Van-Rob Credit Facility - Analyst Blog

GE Capital Canada, the Canadian subsidiary of General Electric Company (GE), recently augmented the borrowing capacity of the senior secured credit facility of Van-Rob Inc. to $91 million. The debt financing will enhance Van-Rob's liquidity and working capital requirements to fuel further growth. GE Capital Canada served both as the lead arranger and administrative agent for the transaction.

Since its inception in 1979, Van-Rob has evolved as a premier designer and manufacturer of automotive parts for leading global players in the industry such as General Motors Company (GM), Ford Motor Co. (F) and Daimler AG (DDAIF). Headquartered in Aurora, Ontario, the company's product portfolio includes metal stampings, modular and structural welded assemblies, mechanical assemblies and heat shields for thermal applications in vehicles.

Van-Rob is likely to utilize the credit facility to seek both organic and inorganic opportunities. The debt financing further increases its financial flexibility and supports its capital expenditures to remain competitive in the industry with continuous research and development initiatives.

General Electric is one of the largest and most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content, and industrial products, the company serves over 100 million customers worldwide. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital.

A few days back General Electric presented its first specific earnings guidance in five years when it offered its outlook for 2015 at an investor presentation. The company also reiterated its commitment to focus more on its industrial business to reduce operating risks associated with the volatility in the financial services business.

In 2015, General Electric expects earnings from its industrial operations to be $1.10 to $1.20 a share, while the finance unit is expected to yield about 60 cents, bringing the overall tally to $1.70 to $1.80 per share. The current Zacks Consensus Estimate for 2015 for this Zacks Rank #3 (Hold) stock is pegged at the midpoint of the guidance at $1.76.