Gehl Gets Two Year Loan Agreement

Gehl Co., West Bend, WI, has amended a bank credit agreement that allows the firm to continue borrowing for two more years, Farm Equipment magazine reports. The agreement with U.S. bank lenders provides for a total credit commitment of $105 million and a term of 24 months.

The credit line consists of an $80 million revolving line based on North American inventories and accounts receivable, and a term loan of $25 million payable in quarterly installments. The credit pact replaces the company’s October 2006 $125 million unsecured credit facility.

As part of the amended credit agreement, the company has granted to its bank lenders a security interest in all of its North American assets. The amended credit agreement addresses matters that gave rise to an April 16 forbearance agreement with the lender group that rescinds and withdraws a notice of debt repayment delivered on March 31.

That agreement with lenders extended the repayment of $117 million in debt under a revolving credit agreement, which serves as Gehl’s principal source of liquidity.