Navistar International Corp. said it has received a commitment for a five-year senior unsecured term loan facility and synthetic revolving facility in an aggregate amount of $1.3 billion. The facilities will be provided by J.P. Morgan Chase Bank
and a group of lenders that includes Credit Suisse, Banc of America Securities and Citigroup Global Markets.
The new loan facilities, which expire in January 2012, and will replace the company’s existing senior unsecured $1.5 billion credit agreement, which expires in March 2009. Navistar will use the proceeds of the new facilities to repay the remaining amount outstanding under the existing loan facility. On Dec. 29, 2006, Navistar voluntarily repaid $200 million of the $1.5 billion credit agreement.
“We are very pleased with the ongoing support of our lenders and relationship banks,” said Bill Caton, Navistar executive vice president and chief financial officer. “This new lending commitment is a real vote of confidence in the company. The new loan facilities will enhance our liquidity and provide additional stability in our overall capital structure at a lower cost.”