Maytag Corp. announced that it has signed a commitment letter for a U.S. $500-million, 5-year senior-secured revolving credit facility. The new credit facility would be fully underwritten by J.P. Morgan Chase Bank, N.A. and Citigroup Global Markets, Inc. and secured by accounts receivable and inventory for certain Maytag subsidiaries.
The appliance maker also announced that it has obtained an amendment to its current $300-million revolving credit facility, due March 2007.
"While historically we have not drawn on this revolving credit facility, the amendment eases covenant requirements and the facility is now secured by accounts receivable and inventory for certain Maytag subsidiaries," said George Moore, Maytag's executive vice president and CFO.
The announcement is the latest development in the company's previously announced plans to review its financing options. During Maytag's first-quarter 2005 conference call on April 22, 2005, the company announced that it would secure a new $500-million credit agreement during the second quarter.
"The new $500-million credit facility commitment and the amendment to the existing $300-million revolving credit facility provide Maytag with substantially more covenant flexibility and funding security to meet liquidity and long-term financing requirements," Mr. Moore said.
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