SAF-Holland Restructures Credit Agreement With Banks

Through a recent agreement with its banks, SAF-Holland managed to restructure and extend its existing $476.9 million credit line until 2014.

According to the company, the move will improve its financial strength, provide liquidity and allow the company to take advantage of the anticipated upturn in the truck and trailer market.

"We have reached a good agreement with the banks - one that puts the company on solid financial footing and, most importantly, gives us the room we need to continue to pursue our strategic goals," said Wilfried Trepels, chief financial officer of SAF-Holland. "Our prospects are good: We are seeing initial signs of a revival in the markets. SAF-Holland as a global supplier of quality systems and components for the commercial vehicle industry is in an excellent position to benefit to an above-average degree from a recovery."

Under the new agreement, the first repayments of principal will be made in February 2012. In exchange, the banks obtain enhanced security in the event of pending illiquidity or imminent insolvency. The new contract is subject to approval from an extraordinary Annual General Meeting of SAF-Holland S.A.

The new financing is part of a comprehensive restructuring that the company launched in reaction to the global economic crisis. The Luxembourg-based truck parts supplier expects the restructuring effort to result in savings in personnel and non-personnel expenses of about $93.6 million by the end of 2009.