Navistar Financial Corp. signed agreements to renew and increase its largest dealer inventory funding facility to $750 million, effective immediately.
The facility is funded through three of NFC's major relationship banks. NFC provides financing programs and services tailored to support Navistar's dealer and customer equipment financing needs.
"We continue to have strong access to capital to support Navistar's growth," said Phyllis Cochran, president and CEO. "The quality of our portfolio and strength of our dealer network have earned the ongoing confidence and support of our relationship banks."
The one-year renewal includes an increase of $250 million over the prior year, in anticipation of the maturity of a $350 million debt issuance in October.
"The increase allows us greater flexibility in funding wholesale assets," said Bill McMenamin, vice president, treasurer and chief financial officer, NFC. "This deal aligns well with our long-term strategy by helping us support our dealer network and the sale of Navistar products."
This comes at a time when Navistar has been under close scrutiny by investors and others. The company's stock plummeted in June after the company a $172 million loss for the second quarter, and earlier this week it announced a new top executive, after the company failed to meet EPA 2010 emissions regulations on time. The company recently went to the debt market and gain access to borrow a billion dollars to help shore up confidence in the company.Related Stories:8/23/2012 Navistar Details Product Changes, Thinking Behind Emissions Strategy Change8/27/2012 Navistar Names New Chairman, Interim CEO After Ustian Announces Retirement