Analyst: Brunswick’s new credit will calm fears

Author:
Updated:
Original:

Brunswick Corp.’s new $400 million revolving credit facility should help calm liquidity fears, according to an analyst who covers the company.

“Although the company does not have any outstanding borrowings on this facility, the amendment provides added financial flexibility,” wrote Edward Aaron, of RBS Capital Markets.

“Clearly business trends remain extremely difficult, and results are likely to be very poor over the next few quarters. Nevertheless, we believe the stock continues to discount excessive liquidity risk and should therefore react favorably to this news,” he added.

Brunswick was trading at $3.63 a share this morning. It closed Monday at $3.85. Its 52-week high and low are $19.63 and $1.82 respectively.

As part of the amended agreement with its lenders, Brunswick's facility was converted into a secured asset-based facility. The facility contains a minimum fixed-charges coverage covenant, which is effective when borrowings are within $60 million of the total borrowing capacity available under the facility.

Related

Yanmar Names Power Solutions Division Manager

Carl J. Micu will oversee sales and the development of long-term growth plans.

Lippert Components Rebrands

The company’s core line of marine, RV and commercial products, including Lewmar and Taylor Made, will be branded as Lippert.

‘A Strong Finish to a Strong Year’

Booming demand for boats continued as the year ended, with the industry posting the highest number of sales since 2007.

Culture Summit 2.0

Correct Craft will gather “organizational culture drivers” for its second summit, which will take place virtually March 3.

Quick Hits: January 22, 2021

B.A.S.S. now taking noms for ‘21 Bassmaster High School All-American Fishing Team and Yacht Sentinel teams with Fountaine Pajot to equip its lineup with connected boat technology.

Teak Isle Expands Operations

The Florida-based manufacturer purchased a 45,000-square-foot facility and two additional CNC routers.