Appliance maker Maytag Corporation announced it has entered into a new U.S. $600 million, 5-year, senior-secured revolving credit agreement. The new credit facility replaces the existing $300 million revolving credit agreement.
"This agreement is a positive development for Maytag," said George Moore, executive vice president and CFO. "The new credit agreement should provide us with substantially more financial flexibility, including capacity to meet all 2006 debt maturities, as well as the ability to operate and restructure our business."
Borrowings under the agreement, which was not drawn down at closing other than to support outstanding letters of credit, are secured by accounts receivable and inventory of Maytag and certain Maytag subsidiaries. Under the terms of the agreement, Maytag also has the ability to increase the new facility by $150 million to $750 million.
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