Harley-Davidson Completes Funding Agreements to Support Financial Services Retail and Wholesale Lending
30 Abril 2009 - 8:18PM
PR Newswire (US)
MILWAUKEE, April 30 /PRNewswire-FirstCall/ -- Harley-Davidson, Inc.
(NYSE: HOG) 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. Company Background
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. Forward-Looking Statements The Company intends that
certain matters discussed in this release are "forward-looking
statements" intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. These forward-looking statements can generally be identified
as such because the context of the statement will include words
such as the Company "believes," "anticipates," "expects," "plans,"
or "estimates" or words of similar meaning. Similarly, statements
that describe future plans, objectives, outlooks, targets, guidance
or goals are also forward-looking statements. Such forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
anticipated as of the date of this release. Certain of such risks
and uncertainties are described below. Shareholders, potential
investors, and other readers are urged to consider these factors in
evaluating the forward-looking statements and cautioned not to
place undue reliance on such forward-looking statements. The
forward-looking statements included in this release are only made
as of the date of this release, and the Company disclaims any
obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances. The Company's ability
to meet the targets and expectations noted depends upon, among
other factors, the Company's ability to (i) anticipate the level of
consumer confidence in the economy, (ii) continue to have access to
reliable sources of capital funding and adjust to fluctuations in
the cost of capital, (iii) manage the credit quality, the loan
servicing and collection activities, and the recovery rates of
HDFS' loan portfolio, (iv) manage changes and prepare for
requirements in legislative and regulatory environments for its
products, services and operations, and (v) adjust to fluctuations
in interest rates. Other factors are described in risk factors that
the Company has disclosed in documents previously filed with the
Securities and Exchange Commission. Many of these risk factors are
impacted by the current turbulent capital, credit and retail
markets and our ability to adjust to the recession. The Company's
ability to sell its motorcycles and related products and services
and to meet its financial expectations also depends on the ability
of the Company's independent dealers to sell its motorcycles and
related products and services to retail customers. The Company
depends on the capability and financial capacity of its independent
dealers and distributors to develop and implement effective retail
sales plans to create demand for the motorcycles and related
products and services they purchase from the Company. In addition,
the Company's independent dealers and distributors may experience
difficulties in operating their businesses and selling
Harley-Davidson motorcycles and related products and services as a
result of weather, economic conditions or other factors.
DATASOURCE: Harley-Davidson, Inc. CONTACT: Media, Bob Klein,
+1-414-343-4433, or Financial Contact, Amy Giuffre,
+1-414-343-8002, both of Harley-Davidson, Inc. Web Site:
http://www.harley-davidson.com/
Copyright