Oakwood Homes Corporation Announces Agreement to Renew Revolving Credit Facility
GREENSBORO, N.C., Nov. 5 /PRNewswire/ -- Oakwood Homes Corporation (NYSE: OH) today announced that it has entered into an agreement with its bank group to extend the maturity of the Company's revolving credit facility.
The amended agreement provides for a $125 million revolving credit facility that will mature in one year and be secured primarily by the Company's inventory at its retail subsidiary. Borrowings under the agreement are dependent on delivery of customary closing documents. The agreement also provides for a one-month period to renegotiate loan covenants.
In addition to this agreement, the Company also expects to enter into a new arrangement with a financial institution that will provide the Company with additional liquidity to finance the Company's subordinated REMIC interests held from prior and future asset-backed securities transactions. The agreement with respect to REMIC interests is subject to the completion of appropriate documentation by the Company and the financial institution. Because this agreement has not been finalized, there can be no assurance that a transaction will be consummated.
William G. Edwards, Chairman and Chief Executive Officer, said: ''We are very pleased to reach agreement with our banking partners and move forward to concentrate on implementing our 9-Point Plan designed to improve our operations and our profitability in fiscal 2000. We believe these credit facilities will provide us with the needed liquidity to implement our plan.''
Oakwood Homes Corporation and its subsidiaries are engaged in the production, sale, financing and insuring of manufactured housing throughout the United States. With approximately 400 Company-owned stores and an extensive network of independent dealers, Oakwood Homes is the nation's largest retailer of manufactured housing.
This press release contains certain forward-looking statements and information based on the beliefs of the Company's management as well as assumptions made by, and information currently available to, the Company's management. Words like ''believe,'' ''expect,'' ''should,'' and similar expressions used in this press release are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions, including risk factors in the Company's Registration Statement on Form S-3 filed February 22, 1999. Should underlying assumptions prove incorrect or should one or more of the risks or uncertainties materialize, actual events or results may vary from those described herein as anticipated, expected, believed or estimated.
SOURCE: Oakwood Homes Corporation
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