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The ABL facility totals $100 million, and includes provisions to increase the size to $120 million to accommodate seasonal fluctuations in receivable balances. On May 29, 2009, the amount outstanding on the ABL facility was $81 million.
Borrowings under the ABL facility will be reported as short-term debt on Brunswick's consolidated balance sheets, with borrowing costs reflected in interest expense. The previous program was structured as a sale of receivables, and consequently, no debt was reflected on the Company's balance sheet. The cost of the previous program was reflected in "other income and expense" as a discount on the sale of receivables. The overall cost of the ABL facility is modestly higher than the previous receivable sale program, and reflects the current lending environment.
The ABL facility is committed through the term of the joint venture agreement, and is incremental to the $1.0 billion secured borrowing facility provided by GECDF to BAC. In addition, the change will not otherwise impact the joint venture's inventory floor-plan finance program.
Additional information concerning the ABL facility, including the entire agreement, can be found under the related Form 8-K filing.
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors; Arvor, Bayliner, Bermuda, Boston Whaler, Cabo Yachts, Crestliner, Cypress Cay, Harris, Hatteras, Kayot, Lowe, Lund, Maxum, Meridian, Ornvik, Princecraft, Quicksilver, Rayglass, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant boats; Attwood marine parts and accessories; Land 'N' Sea, Kellogg Marine, Diversified Marine and Benrock parts and accessories distributors; Life Fitness and Hammer Strength fitness equipment; Brunswick bowling centers, equipment and consumer products; Brunswick billiards tables and foosball tables. For more information, visit http://www.brunswick.com.
About GE Capital, Commercial Distribution Finance
GE Capital's Commercial Distribution Finance business is a leading financing provider to manufacturers and their distributors. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management, e-commerce services and related financial products. Additional information about CDF can be found online at www.ge.com/cdf.
GE Capital offers consumers and businesses around the globe an array of financial products and services. GE (NYSE: GE | Quote | Chart | News | PowerRating) is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems. For more information, visit the company's Web site at www.ge.com.
SOURCE Brunswick Corporation
http://www.brunswick.com
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