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Harley-Davidson Completes Funding Agreements to Support HDFS Lending

Harley-Davidson Inc. and its Harley-Davidson Financial Services (HDFS) subsidiary have finalized agreements that, in combination with other previously completed transactions, provide approximately $1 billion in funding to fuel HDFS' lending activities in 2009.

by Staff
May 1, 2009
1 min to read


MILWAUKEE — Harley-Davidson Inc. and its Harley-Davidson Financial Services (HDFS) subsidiary have finalized agreements that, in combination with other previously completed transactions, provide approximately $1 billion in funding to fuel HDFS' lending activities 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.

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Earlier 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.

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