Navistar Has New $1.04 Billion Term Loan

Navistar International Corp. said it has a new $1.04 billion senior secured term loan to give the truck maker additional financial flexibility.

Navistar, based in Lisle, Illinois, also announced the refinancing of a smaller, $697.5 million term loan that was due in August 2017. The new term loan’s expiration date is August 2020.

“The term-loan renewal will provide us additional flexibility to pursue these initiatives while extending our debt maturity profile,” Chief Financial Officer Walter Borst said. “The company’s financial condition and results continue to improve steadily, and we have begun to generate positive cash flow. We’re investing in new products and advancing on our Uptime strategy in the market, driven by our focus on connected vehicles.”

J.P. Morgan Securities, Goldman Sachs Lending Partners and Credit Suisse Securities were the lead arrangers of the term loan, Navistar said in a statement.

Navistar, in a Securities and Exchange Commission filing, said it has amended its credit agreement, which is backed by assets. The credit agreement was amended to allow the larger $1.04 billion term loan.

The credit agreement change also permits the company to issue an additional $200 million in senior notes and increases available financing based on receivables. In addition, the credit agreement was extended one year to May 2018.

Navistar’s credit availability under the asset-backed loan, or ABL, remains at $175 million.