MILWAUKEE, Oct. 13, 2011 /PRNewswire via COMTEX/ --
Briggs & Stratton Corporation (NYSE: BGG) today announced the closing of a new five-year $500 Million Senior Unsecured Revolving Credit Facility with a syndicate of financial institutions. The multicurrency credit agreement also includes an optional increase in aggregate commitment amount of up to $250 million, subject to certain conditions. This agreement replaces the company's existing credit agreement maturing in July 2012. As of the end of the company's most recent fiscal year ended July 3, 2011, no amounts were outstanding under the existing agreement.
"We are pleased to have replaced this important source of unsecured, committed financing with such a strong showing of support from our existing and new financial institutions. It is a testament to our strong relationships as well as their confidence in the continued strength of and the outlook for our business," said David Rodgers, Briggs & Stratton Corporation Senior Vice president and Chief Financial Officer. "Our capital structure, management, continued strong free cash flow generation and the new credit facility provide us with the financial flexibility to support continued organic growth in our core businesses and our strategy to diversify and grow geographically."
Fifteen financial institutions participated in the facility, which was more than 35 percent oversubscribed with J.P. Morgan Securities LLC and U.S. Bank N.A. serving as joint lead arrangers. The company intends to use the Senior Unsecured Revolving Credit Facility to fund strategic growth initiatives, working capital and other general corporate purposes. Material terms and conditions of the credit facility will be described in the company's filings with the Securities and Exchange Commission.
About Briggs & Stratton Corporation:
Briggs & Stratton Corporation, headquartered in Milwaukee, Wisconsin, is the world's largest producer of gasoline engines for outdoor power equipment. Its wholly owned subsidiary Briggs & Stratton Power Products Group LLC is North America's number one manufacturer of portable generators and pressure washers, and is a leading designer, manufacturer and marketer of standby generators, along with lawn and garden and turf care through its Simplicity®, Snapper®, Ferris® and Murray® brands. Briggs & Stratton products are designed, manufactured, marketed and serviced in over 100 countries on six continents.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. The forward-looking statements are based on the company's current views and assumptions and involve risks and uncertainties that include, among other things, the ability to successfully forecast demand for our products; changes in interest rates and foreign exchange rates; the effects of weather on the purchasing patterns of consumers and original equipment manufacturers (OEMs); actions of engine manufacturers and OEMs with whom we compete; changes in laws and regulations; changes in customer and OEM demand; changes in prices of raw materials and parts that we purchase; changes in domestic and foreign economic conditions; the ability to bring new productive capacity on line efficiently and with good quality; outcomes of legal proceedings and claims; and other factors disclosed from time to time in our SEC filings or otherwise, including the factors discussed in Items 1A, Risk Factors, of the company's Annual Report on Form 10-K and its periodic reports on Form 10-Q.
BRIGGS & STRATTON CORPORATION
David J. Rodgers
Senior Vice President and Chief Financial Officer
SOURCE Briggs & Stratton Corporation