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Fleetwood Enterprises Inc. has increased its borrowing power as a result of an agreement reached earlier this week with Bank of America, the company reports.
Fleetwood’s “senior credit facility,” which was scheduled to expire in July, was renewed and was increased by $20 million to $150 million. The new deal’s improved terms give Fleetwood an additional $30 million in borrowing capability, the company reported.
Bank of America was the underwriter for the credit facility, which will now be syndicated.
“Our relationship with Bank of America has been very positive, as evidenced by this early extension of our agreement, which affords us improved terms and enhanced liquidity to support projected growth in our businesses over the term of the line,” said Boyd Plowman, Fleetwood’s executive vice president and CFO.
“We’re pleased that our bank group recognizes the considerable progress Fleetwood has made over the past year, resulting in improved pricing and borrowing availability and better covenant flexibility in this new agreement,” Plowman added.
The proceeds available under the facility will be used to support letters of credit and will be available as needed for other general corporate purposes. The facility is secured by substantially all of Fleetwood’s assets, except certain real estate, finance receivables and inventories and the cash value of company-owned life insurance.