Skyline Corp. announced that the Elkhart, Ind.-based company and certain of its wholly-owned subsidiaries have entered into a Loan and Security Agreement with First Business Capital Corp. providing for a renewable three-year secured revolving credit facility.
According to a news release, under the new credit facility, the company may obtain loan advances up to a maximum of $10 million, subject to certain collateral-obligation ratios. Outstanding loan advances under the facility will bear interest at 3.75% in excess of The Wall Street Journal’s published one year LIBOR rate. The facility will be used to support the company’s working capital needs and other general corporate purposes, and is secured by substantially all of the company’s and its subsidiaries’ assets.
The manufactured housing and park model builder divested its RV interests in a sale to Middlebury, Ind.-based EverGreen Recreational Vehicles LLC in October of 2014.
Commenting on the completion of the credit facility, Skyline President and CEO Bruce Page said, “After considering a number of financing alternatives, we are pleased to have established this credit facility with First Business Capital. This credit facility is ideally suited to support the execution of our strategic plan.”