Invacare secures new credit facility

Tuesday, January 20, 2015

ELYRIA, Ohio – Invacare has secured a new revolving credit and security agreement, establishing a $100 million asset-based lending senior secured credit facility, the company announced Jan. 16.

“Under the new credit facility, the company will not have the financial covenant limitations, such as the debt leverage covenant, which was in the previous credit agreement,” stated Rob Gudbranson, interim president and CEO, and senior vice president and CFO, in a press release. “We appreciate the support of our bank group in negotiating this new facility.”

The new credit facility, which matures January 2018, replaces Invacare’s prior senior secured credit facility, which was set to mature October 2015.

The borrowing availability under the new credit facility is determined by the value of Invacare’s eligible accounts receivable, inventory, and machinery and equipment assets in the United States and Canada, up to a maximum aggregate borrowing amount of $100 million.

Invacare’s preliminary aggregate borrowing base under the new credit facility is about $76 million, which is further limited by a number of provisions.