Gehl Amends Credit Agreement

Gehl Co., West Bend, Wis., has reportedly entered into an amendment of its bank credit agreement, allowing continued borrowing of $105 million for the next 24 months.

The agreement includes two separate credit facilities, including a revolving line of $80 million based on Gehl’s North American inventories and accounts receivable maturing on June 26, 2011 and a term loan of $25 million payable in quarterly installments through June 26, 2011. As part of the amended credit agreement, Gehl has granted a security interest in all of its North American assets to its bank lenders.

The amended credit agreement replaces the company’s October 2006 $125 million unsecured credit facility, and it addresses all matters that gave rise to the forbearance agreement that Gehl had entered into with its U.S. bank lenders on April 16, 2009. Gehl has significantly reduced its outstanding borrowing using operating cash flows created in part by the cost savings initiatives implemented over the past months.

Jean-Christophe Giroux, president of Gehl’s parent company, Manitou B.F., said: who declared: “The successful renegotiation of the Gehl credit agreement is an important step in the improvement of the company’s situation at a time of economic turmoil. We can now focus on implementing operating synergies within the overall Manitou group. Furthermore, this will allow the Manitou group to complete negotiations with its French bank lenders to amend a portion of its October 2008 credit agreement before the end of July.”