Accuride Corp, Evansville, Ind., is drawing approximately $95 million under its $125 million revolving credit facility under its Fourth Amended and Restated Credit Agreement.
Because the company does not anticipate that Lehman Commercial Paper will fund its $16.6 million portion of the drawing due to its bankruptcy filing, the company anticipates receiving total proceeds of approximately $78.4 million in connection with the borrowing.
Following this borrowing, the remaining balance under the revolving credit facility is approximately $30 million. Lehman Commercial Paper's remaining commitment under the revolving credit facility is approximately $7.6 million.
The revolving credit facility expires in January 2010.
"Although the company does not have any immediate needs for this additional liquidity, in light of the current financial market conditions and as a precautionary measure, we made the borrowings under our revolver to enhance the quality of the Company's liquidity," said Bill Lasky, Accuride's interim president and CEO. "Furthermore, we continue to expect that the company will remain in compliance with its financial covenants through the end of 2008."
In September, Accuride announced a major restructuring initiative, which called for the elimination of 392 positions, or 11 percent, of its total workforce; saw the resignation of President and CEO John Murphy; and established an Aftermarket Division.
More info: www.accuridecorp.com
Because the company does not anticipate that Lehman Commercial Paper will fund its $16.6 million portion of the drawing due to its bankruptcy filing, the company anticipates receiving total proceeds of approximately $78.4 million in connection with the borrowing.
Following this borrowing, the remaining balance under the revolving credit facility is approximately $30 million. Lehman Commercial Paper's remaining commitment under the revolving credit facility is approximately $7.6 million.
The revolving credit facility expires in January 2010.
"Although the company does not have any immediate needs for this additional liquidity, in light of the current financial market conditions and as a precautionary measure, we made the borrowings under our revolver to enhance the quality of the Company's liquidity," said Bill Lasky, Accuride's interim president and CEO. "Furthermore, we continue to expect that the company will remain in compliance with its financial covenants through the end of 2008."
In September, Accuride announced a major restructuring initiative, which called for the elimination of 392 positions, or 11 percent, of its total workforce; saw the resignation of President and CEO John Murphy; and established an Aftermarket Division.
More info: www.accuridecorp.com
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