(Source: PRNewswire)
TROY, Mich., Sept. 8 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc. (NYSE: ARM) today announced that the company has entered into a new, two-year U.S. receivables financing arrangement (the "New Facility"). Under the terms of the New Facility, ArvinMeritor's subsidiary, ArvinMeritor Receivables Corporation ("ARC"), will purchase eligible accounts receivable from certain other ArvinMeritor subsidiaries (the "Originators") and will borrow under a credit facility funded by multiple lenders. ARC's borrowings will be secured by an interest in the purchased receivables, and ARC will use the proceeds of the borrowings to fund purchases of receivables from the Originators. The purchased receivables under the New Facility are expected to be substantially similar to those under the facility it replaces.
Under the New Facility, ARC will be able to borrow monies from a bank group led by GMAC Commercial Finance LLC in an aggregate principal amount outstanding at any one time of not to exceed $105 million. This amount may be increased at the request of ARC and with the consent of the Agent to $125 million upon the identification of lenders that may be willing to provide such additional funding. As of the closing date, the borrowing availability under the New Facility is expected to exceed the availability under the facility it replaces.
"The new facility demonstrates ArvinMeritor's continued focus on our liquidity," said Chip McClure, chairman, CEO and president. "We appreciate the support of the New Facility lenders, and look forward to continuing to implement our strategic initiatives that are designed to drive growth."
The company filed today a Form 8-K with the Securities and Exchange Commission that further describes the New Facility. To review the company's filing, visit www.sec.gov.
About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company marks its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: http://www.arvinmeritor.com.
Forward-Looking Statements
This press release contains statements relating to future results of the company (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.
