Gehl Begins Five-Year Unsecured Revolving Credit Agreement

October 23, 2006 • Gehl Co., West Bend, Wis., announced that it has entered into a $125 million unsecured revolving credit agreement with a syndicate of banks, including Bank of Montreal, as agent for the lenders. The new five-year agreement replaces an existing agreement with the same bank group that was established in June 2005. Borrowings under the new agreement were used to repay in full Gehl's existing senior secured borrowings under the June 2005 agreement.

 

“The new facility extends the credit commitment of the bank group for a new five year period, reduces our borrowing costs, and provides additional flexibility in managing our business on a day-to-day basis by returning Gehl Co. to the status of an unsecured borrower,” said Thomas M. Rettler, chief financial officer. In addition to retiring existing borrowings under the June 2005 facility, the new facility will be used to repay other short-term debt and for general corporate purposes.