Small appliances maker Jarden said it closed a U.S. $250 million accounts receivable securitization, renewable annually and bearing interest at a margin over the commercial paper rate. The facility will be drawn upon and repaid as needed to fund general corporate purposes and potential future acquisitions.
Jarden said the securitization facility will be reflected as short-term borrowing on its balance sheet because of the annual renewal.
"By carving out our high-quality accounts receivable with this flexible financing arrangement, this facility increases our short-term borrowing capacity to coincide with our highly-seasonal working capital cycle," said Jarden Chairman and CEO Martin E. Franklin. "Additionally, the attractive interest rate represents a substantial cash interest expense savings to the company. We continue to enjoy a strong partnership with our lenders and are pleased with this facility which we believe further rounds out our capital structure and aligns it with our business and growth plans."
Jarden Corporation, headquartered in Rye, New York, U.S., sells home consumer products through three primary business segments and numerous brands. It has more than 20,000 employees worldwide.
The Branded Consumables business sells brands such as Ball(R), Bee(R), Bicycle(R), Crawford(R), Diamond(R), First Alert(R), Forster(R), Hoyle(R), Kerr(R), Lehigh(R), Leslie-Locke(R), and Loew-Cornell(R).
The Consumer Solutions business sells brands such as Bionaire(R), Crock-Pot(R), FoodSaver(R), Harmony(R), Health o meter(R), Holmes(R), Mr. Coffee(R), Oster(R), Patton(R), Pine Mountain(R), Rival(R), Seal-a-Meal(R), Sunbeam(R), VillaWare(R), and White Mountain(TM).
The Outdoor Solutions business sells brands such as Campingaz(R) and Coleman(R).
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