Forklift News - Gehl, Linde extend credit arrangements

Gehl has updated its funding arrangements

Manitou has announced that its subsidiary, Gehl Company, has entered into an amendment of its bank credit agreement allowing continued borrowing for the next 24 months.

Gehl’s amended credit agreement with its US bank lenders provides for a total credit commitment of USD105 million and a term of 24 months.

This agreement includes two separate credit facilities: a revolving line for USD80 million based on the company’s North American inventories and accounts receivable maturing on June 26, 2011, and a term loan of USD25 million payable in quarterly instalments until June 26, 2011.

As part of the amended credit agreement, Gehl has granted to its bank lenders a security interest in all of its North American assets. The amended credit agreement replaces the company’s October 2006 USD125 million unsecured credit facility.

The amended credit agreement addresses all matters that gave rise to the Forbearance Agreement the company entered into with its lenders in April. The company has significantly reduced its outstanding borrowing, using operating cash-flows created in part by the cost savings initiatives implemented over the past months.

Malcolm "Mac" F. Moore, Gehl president, notes that in an unprecedented financial and economic environment, his team has been successful in renegotiating its credit line. "This important achievement should bolster the confidence of our business partners and employees and allow us to devote our full attention to running the business and preparing for the eventual upturn of the compact equipment marketplace".

Gehl is a manufacturer and distributor of compact equipment used worldwide in construction and agricultural markets. In October 2008, it became a subsidiary of the Manitou Group which designs, assembles and distributes material handling equipment serving the construction, agriculture and industrial sectors.

Meanwhile, the Linde Group has announced that it has signed a two-year Euro-denominated forward-start revolving credit facility in an amount of EUR 1.6 billion (USD2.2 billion) available from 2011.

The credit facility will be available at the time Linde's existing revolving credit facility expires on 3 March, 2011. It will be the company's primary liquidity source from banks and is available for general corporate purposes.

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