Brunswick announced that it and a group of financial institutions amended and restated the Company’s revolving credit facility. The facility, which will be in effect through 2019, remains at $300 million and offers Brunswick more favorable terms in light of its enhanced capital structure and improving market conditions.

J.P. Morgan Securities, Bank of America Merrill Lynch and Wells Fargo Securities led the facility amendment and restatement, which remains in place through June 2019.

In addition to the amended facility, Brunswick entered into an agreement with GE Capital Solutions to amend the terms of its joint venture agreement. The amendment is necessitated by the new financial ratio covenants included in the revolving credit facility, and will synchronize the leverage coverage covenant between each agreement. The joint venture, Brunswick Acceptance Company (BAC), began operations in 2003, with the terms of the current agreement through 2016. BAC provides wholesale floor plan financing for qualifying Brunswick marine dealers.

Brunswick believes its new facility provides adequate levels of credit availability and supplements its current strong cash position. Additionally, the facility provides improved terms and conditions that enhance the Company’s overall financial flexibility.

“With this amendment, Brunswick continues to maintain ample liquidity and financial flexibility with which to move forward,” explained Brunswick SVP and CFO William L. Metzger. “Further, we believe the terms of the facility recognize the significant progress that Brunswick has made in the past several years as we have successfully emerged from the effects of the recession. It acknowledges our execution against our strategic plan, continued improvement of our financial results, and the work we have done to generate cash, reduce debt and strengthen our capital structure along with our continuing focus on returning to investment grade status.”

As part of the amendment, the facility was converted into a secured cash-flow facility from a secured asset-based facility, with provisions that allow for a release of collateral when the company achieves certain credit rating levels. The facility contains a leverage coverage covenant and an interest coverage covenant. There are presently no borrowings under the facility; however, there are previously issued letters of credit, which total approximately $6 million.