Brunswick Corporation : Brunswick Announces Amendment To Revolving Credit Facility
Brunswick Corporation (NYSE: BC)
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.
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