Gehl Amends Credit Facility

Manitou’s Gehl Co., subsidiary has entered into an amendment of its bank credit agreement allowing continued borrowing for the next 24 months. Gehl’s amended credit agreement with its U.S. bank lenders provides for a total credit commitment of $105 million and a term of 24 months.

This agreement includes two separate credit facilities:

• A revolving line for $80 million based on the company’s North American inventories and accounts receivable maturing on June 26, 2011.

• A term loan of $25 million payable in quarterly installments through June 26, 2011.

As part of the amended credit agreement, Gehl has granted to its bank lenders a security interest in all of its North American assets. The amended credit agreement replaces the company’s October 2006 $125 million unsecured credit facility.

"In an unprecedented financial and economic environment, the GEHL team has been successful in renegotiating its credit line. This important achievement should bolster the confidence of our business partners and employees and allow us to devote our full attention to running the business and preparing for the eventual upturn of the compact equipment marketplace," said Malcolm Moore, president of Gehl.