Corporate and Financial
Brunswick Replaces Existing Accounts Receivable Sale Program Under Joint Venture Agreement
LAKE FOREST, Ill., June 4 /PRNewswire-FirstCall/ -- Brunswick Corporation
(NYSE: BC) announced today that it and GE Commercial Distribution Finance
Corporation (GECDF) have entered into an asset-based loan (ABL) facility,
secured by the domestic accounts receivable of Mercury Marine, a division of
Brunswick. The ABL facility replaces Brunswick's existing accounts receivable
sale program, pursuant to which Brunswick had sold the domestic Mercury Marine
receivables to Brunswick Acceptance Company, LLC (BAC), a joint venture
between Brunswick Financial Services Corporation, a Brunswick subsidiary, and
CDF Ventures, LLC, a subsidiary of GE Capital Corporation.
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) 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
CONTACT: Bruce Byots, Vice President - Corporate and Investor Relations,
+1-847-735-4612, or Daniel Kubera, Director - Media Relations and Corporate
Communications,
+1-847-735-4617,
daniel.kubera@brunswick.com, both of
Brunswick Corporation
Web Site: http://www.brunswick.com
http://www.ge.com
