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Brunswick: New credit facility ensures liquidity

Brunswick Corp. secured a new $400 million revolving credit facility last Friday to ensure more liquidity and financial flexibility in the current downturn.

"We believe the amount available under this facility, combined with the cash on our balance sheet as well as recent and future cost-savings efforts, should provide us the necessary liquidity to manage effectively through these difficult market and economic conditions," said Dustan McCoy, Brunswick chairman and CEO, in a statement.

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.

There are presently no borrowings under the facility; however, there are previously issued letters of credit, which total approximately $88 million. The amendment to the facility, which remains in place through May 2012, was led by J.P. Morgan Securities Inc.

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