Harley-Davidson Completes Funding Agreements to Support Financial Services Retail and Wholesale Lending
MILWAUKEE - April 30, 2009: Harley-Davidson, Inc. and its Harley-Davidson Financial Services (HDFS) subsidiary have finalized agreements that, in combination with other previously completed transactions, provide the approximately $1 billion in funding capacity that the Company anticipates is needed for HDFS lending in 2009.
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. The facility expires April 29, 2010. Additionally, Harley-Davidson and HDFS have replaced a 364-day, $950 million bank credit facility expiring July 31, 2009 with a new 364-day, $625 million credit facility expiring April 29, 2010. Together, the two agreements provide additional available credit of up to approximately $375 million over the term of the agreements, for the lending activities of HDFS.
Early this year, the Company identified obtaining funding for HDFS lending activities as one of its strategic priorities in the current economy, and estimated HDFS' 2009 funding needs at about $1 billion. 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.
Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company (HDMC), Buell Motorcycle Company (Buell), MV Agusta and Harley-Davidson Financial Services (HDFS). Harley-Davidson Motor Company produces heavyweight custom, touring and cruiser motorcycles. Buell produces American sport performance motorcycles. MV Agusta produces premium, high-performance sport motorcycles sold under the MV Agusta(R) brand and lightweight sport motorcycles sold under the Cagiva(R) brand. HDFS provides wholesale and retail financing and insurance programs primarily to Harley-Davidson and Buell dealers and customers.