Navistar amended its ABL credit agreement with Bank of America as administrative agent and JPMorgan Chase Bank and Wells Fargo Bank as syndication agents.

The amended ABL credit agreement amended and restated the existing senior secured, asset-based revolving credit facility entered into on August 17, 2012. The amended agreement, among other things, reduced the size of the revolving credit facility from $175 million to $125 million, reduced the interest rate applicable to the outstanding borrowings under the revolving credit facility by an average of 0.50%, and extended the maturity date from May 18, 2018 to August 4, 2022.

The amended agreement also provided for a maximum amount of uncommitted new revolving commitments of $150 million and for an unlimited amount of secured and unsecured debt so long as the maturity is after the maturity date of the amended ABL credit agreement, there is no default under the amended agreement and any collateral does not include assets that are part of the borrowing base for the agreement. The liquidity block was also reduced from $35 million to $12.5 million.

Under the terms of the amended ABL agreement, the interest rate on the outstanding borrowings is based on an adjusted Eurodollar rate plus a margin of 2.75%, or an alternate base rate plus a margin of 1.75%.