Fleetwood Enterprises Inc. announced today (Aug. 1) that it has finalized a senior secured credit agreement that allows the company to repay the $70 million that it owed to Prudential Insurance Co. of America.
“Paying off the Prudential debt has eliminated the previously announced balance sheet-covenant issues regarding those loans,” said Nelson Potter, president and CEO.
The senior credit facility is currently structured as a three-year, syndicated revolving credit facility of up to $230 million, with an additional two-year term loan of up to $30 million.
Bank of America is the leader of the syndicate of lenders providing the financing. Other participants include Citicorp USA, Heller Financial, The CIT/Business Credit Inc. and Foothill Capital Corp.
So far, commitments for $195 million in financing have been finalized.
In addition to repaying Prudential, the funding package will be used to pay down Fleetwood’s manufactured housing floorplan loan, to support letters of credit and for other general corporate purposes.
The funding is secured “by substantially all of the company’s assets, except certain inventories and the cash value of company-owned life insurance,” according to Fleetwood.