Harley-Davidson and its subsidiary Harley-Davidson Financial Services (HDFS) finalized agreements to provide about $1 billion in funding capacity to support HDFS lending this year, stated Harley-Davidson in a press release.
HDFS increased the size of an existing $500 million asset-backed commercial paper conduit facility to up to $1.2 billion, based on the level of outstanding receivables, which expires April 29, 2010. Additionally, Harley-Davidson and HDFS have replaced a 364-day, $950 million bank credit facility expiring July 31, with a new 364-day, $625 million credit facility expiring April 29, 2010. Together, the two agreements provide additional available credit of up to about $375 million over the term of the agreements, for the lending activities of HDFS.
In February, the company completed an offering of $600 million in senior unsecured notes. First-and second-quarter 2009 dividend reductions combined are preserving about another $100 million in cash.