Brunswick Corporation : Brunswick Announces Amendment To Revolving Credit Facility

Brunswick Corporation

announced today that it and a group of financial institutions have amended and restated the Company's revolving credit facility. The facility, which will be in effect through 2019, remains at $300 million and offers Brunswick more favorable terms in light of its enhanced capital structure and improving market conditions. The Company believes the new facility provides adequate levels of credit availability and supplements its current strong cash position. Additionally, the facility provides improved terms and conditions that enhance the Company's overall financial flexibility. "With this amendment, Brunswick continues to maintain ample liquidity and financial flexibility with which to move forward," explained Brunswick Senior Vice President and Chief Financial Officer William L. Metzger. "Further, we believe the terms of the facility recognize the significant progress that Brunswick has made in the past several years as we have successfully emerged from the effects of the recession. It acknowledges our execution against our strategic plan, continued improvement of our financial results, and the work we have done to generate cash, reduce debt and strengthen our capital structure along with our continuing focus on returning to investment grade status." As part of this amendment, the facility was converted into a secured cash flow facility from a secured asset-based facility, with provisions that allow for a release of collateral when the Company achieves certain credit rating levels. The facility contains a leverage coverage covenant and an interest coverage covenant. There are presently no borrowings under the facility; however, there are previously issued letters of credit, which total approximately $6 million. The amendment and restatement of the facility, which remains in place through June 2019, was led by JP Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities, LLC.