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JPMorgan and Wells Fargo Double Drew Industries’ Credit Line to $200MM

April 29, 2016, 08:10 AM
Filed Under: Manufacturing

Drew Industries Incorporated, a leading supplier of components for the recreational vehicle and adjacent industries, announced the successful refinancing of its revolving credit facility.  The new five-year $200 million revolving credit facility replaces its existing $100 million revolving credit facility, which was scheduled to expire in January 2019.  The Company had no borrowings under the prior facility at the closing of the refinancing.

The new facility is led by JPMorgan and Wells Fargo Bank, who have been long time lenders to the company.  In addition to those lenders, Bank of America Merrill Lynch and 1st Source Bank are participating in this facility.  This new revolving credit facility contains a feature allowing the company to draw up to $50 million of the borrowing capacity in approved foreign currencies, including Australian Dollars, Canadian Dollars, Pound Sterling and Euros.  The new facility can also be expanded by a further $125 million, to a total size of $325 million.

The company intends to use the capacity to fund future growth organically and through acquisition.  "We are excited to continue and expand our credit relationship with our long time lending partners and to begin working with Bank of America Merrill Lynch and 1st Source Bank," said David M. Smith, Chief Financial Officer.  "This new agreement, with its expanded capacity, multi-currency feature and improved financial terms provides the Company with a platform to use its financial strength to continue to seek out and capitalize on growth opportunities."

From 44 manufacturing and distribution facilities located throughout the United States and Canada, Drew Industries, through its wholly-owned subsidiary, Lippert Components®, supplies a broad array of components in the United States and abroad for the leading manufacturers of recreational vehicles and manufactured homes and for the related aftermarkets for those industries, and to a lesser extent supplies components for adjacent industries including buses; trailers used to haul boats, livestock, equipment and other cargo; pontoon boats; modular housing; and factory-built mobile office units.

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