Tuesday April 11, 2000
Lanier Worldwide Inc. Completes $50 Million Securitization of Trade Receivables
ATLANTA, April 11 /PRNewswire/ -- Lanier Worldwide, Inc. (NYSE: LR - news) announced today the completion of a $50 million securitization of its domestic trade receivables agented by Wachovia Securities, Inc. This action will save more than $500,000 in fees and interest in the first year. To date, $42.5 million of the $50 million has been funded with the balance to be funded as receivable balances change.
``This is the first part of our plan to reduce the cost of borrowing and diversify our sources of funding,' said James MacLennan, Executive Vice President and Chief Financial Officer. ``These funds will be used to pay down our $250 million term loan,' he added.
In addition, the company has mandated Banc One Capital Markets, Inc. and Wachovia Securities, Inc. to co-arrange a $200 million lease securitization facility. The agents are completing their due diligence on this facility and the company expects it to close before July 2000, assuming rates and market conditions remain similar.
At the time of the company's spin-off from Harris Corporation, Inc. on November 5, 1999, the company's total debt was $732 million. As of today, the company's total debt has been reduced to $632 million.
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