RV and manufactured home builder Fleetwood Enterprises Inc. announced that its revolving line of credit has been increased by $20 million to $130 million, according to Boyd Plowman, CFO.
Fleetwood’s revolving line of credit is with a syndicate of banks let by Bank of America. The return of a former member of the syndicate allowed for the increase, Plowman said.
“This increase will provide additional liquidity as we move into the strongest selling season in both our industries,” he added.
Meanwhile, Fleetwood also announced today (March 26) that it now believes it will satisfy the terms of its revolving line of credit at least until the agreement expires in July 2004. Earlier, Fleetwood said it did not believe it could satisfy a covenant relating to its earnings before interest, taxes, depreciation and amortization (EBITA) in its fourth fiscal quarter, which will end on April 27.
Additionally, Fleetwood’s inventory finance agreement with Textron Financial has been amended to include the same EBITA covenant included in Fleetwood’s revolving line of credit.