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Specialty aluminum trailer and luxury motorcoach manufacturer Featherlite Inc. has renewed long-term financing agreements with its lenders, U.S. Bank, formerly known as Firstar, and Deutsche Financial Services Corp.
Under the terms of a two-year agreement, Deutsche will provide a $25 million floorplan loan to Featherlite for new and pre-owned motorhomes.
Meanwhile. U.S. Bank, under a three-year agreement, will provide Featherlite with a $14 million asset-based revolving credit commitment, a $7.2 million term loan for existing real estate and equipment and $2 million as a term loan for the purchase of new equipment.
The agreements are subject to covenants which are based upon financial performance targets for 2002 which Featherlite believes are attainable, according to Conrad Clement, president and CEO.
The financing will allow Featherlite to strive towards its “long-term business objectives,” he added.
Additionally, Featherlite has entered into a sale and leaseback agreement involving its Sanford, Fla., sales and service center. Featherlite sold the property for $5 million and will lease it back over seven years. Featherlite will use the proceeds to retire debt and it as a repurchase option, which it plans to exercise in 2005.