Daimler-Benz North America Corp to Enter $4 Billion in Agreements
22 June 1998
Daimler-Benz North America Corporation to Enter $4 Billion in Syndicated Credit Agreements
NEW YORK--June 19, 1998--Daimler-Benz North America Corporation (DBNA) today announced that it has entered into syndicated credit agreements totaling $4 billion with a group of 34 international banks. The new credit agreements are comprised of a $3 billion 364-day facility and a $1 billion five-year facility. Both agreements are available for general corporate purposes, including backstopping DBNA's commercial paper program. The agreements replace existing bilateral credit lines and commitments, which previously served such purpose. DBNA's desire to obtain these credit facilities is entirely unrelated to the planned merger of its parent company Daimler-Benz AG with Chrysler Corporation.The new credit agreements were arranged by J.P. Morgan, which will also serve as Administration Agent. Deutsche Bank and Chase Manhattan Bank were Syndication Agent and Documentation Agent, respectively.
DBNA is a wholly owned subsidiary of Daimler-Benz AG, and the holding company and financial center of most of the Daimler-Benz activities in the Nafta region. In 1997, DBNA had consolidated revenues of $14.3 billion and a net income of $305 million.
Daimler-Benz is a leading provider of technologically advanced transportation products, systems and services, with 300,000 employees worldwide and annual revenues of approximately $70 billion. The company is focused on the development and manufacture of Mercedes-Benz passenger and commercial vehicles, Freightliner and Sterling trucks, aircraft (Airbus) and space systems among other activities. North America, where Daimler-Benz has more than 20,000 employees, is not only the group's largest export market, but also a significant location for manufacturing, product development and cooperative ventures. (NYSE Symbol:DAI).
For more information on Daimler-Benz North America Corporation, its subsidiaries and affiliated companies, please visit our website at www.daimlerbenz-na.com