MILWAUKEE -- Oct. 13 -- Briggs and Stratton Corporation today announced the closing of a new five-year $500 Million Senior Unsecured Revolving Credit Facility with a syndicate of financial institutions.
The multicurrency credit agreement also includes an optional increase in aggregate commitment amount of up to $250 million, subject to certain conditions.
This agreement replaces the company's existing credit agreement maturing in July 2012. As of the end of the company's most recent fiscal year ended July 3, 2011, no amounts were outstanding under the existing agreement.
"We are pleased to have replaced this important source of unsecured, committed financing with such a strong showing of support from our existing and new financial institutions. It is a testament to our strong relationships as well as their confidence in the continued strength of and the outlook for our business," said David Rodgers, Briggs and Stratton Corporation Senior Vice president and Chief Financial Officer.
"Our capital structure, management, continued strong free cash flow generation and the new credit facility provide us with the financial flexibility to support continued organic growth in our core businesses and our strategy to diversify and grow geographically."
Fifteen financial institutions participated in the facility, which was more than 35 percent oversubscribed with J.P. Morgan Securities LLC and U.S. Bank N.A. serving as joint lead arrangers.
The company intends to use the Senior Unsecured Revolving Credit Facility to fund strategic growth initiatives, working capital and other general corporate purposes.
Material terms and conditions of the credit facility will be described in the company's filings with the Securities and Exchange Commission.
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