Navistar International Corporation
) announced the amendment of its $1 billion senior secured term
loan facility. Under the amendment, maturity date was extended
from Jul 16, 2014 to Aug 17, 2017 and it is expected to include
an interest rate repricing.
NAVISTAR INTL (NAV): Free Stock Analysis
STRATTEC SEC CP (STRT): Free Stock Analysis
GENTHERM INC (THRM): Free Stock Analysis
CHINA ZENIX AUT (ZX): Free Stock Analysis
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On Aug 2012, Navistar, had borrowed an aggregate principal amount
of $1 billion under the Term Loan Credit Facility. The proceeds
from this loan were used to repay all borrowings under Navistar's
existing Asset-Based Credit Facility.
Navistar also intended to use the term loan for supporting the
adoption of after-treatment solution, which will accelerate
delivery of the company's next-generation clean engine solution.
The facility will also support the market transition plan for
Class 8 engines, thus providing financial flexibility to the
However, the company's interest expenses had increased due to
this additional borrowing. Interest expenses increased $13
million in the first quarter of fiscal 2013 due to the additional
term loan facility.
Apart from the amendment, Navistar also announced that it is
planning to offer $300 million of unsecured debt. The proceeds
from this debt will be used to repay some amount of the term
Warrenville, Ill-based Navistar International manufactures and
sells commercial trucks, mid-range diesel engines, buses,
military vehicles and chassis for motor homes and step-vans. It
also provides service parts for various trucks and trailers.
Currently, the company retains a Zacks Rank #3 (Hold) on its
Navistar recorded narrower loss of $114.0 million or $1.42 per
share in the first quarter of fiscal 2013 ended Jan 31, 2013
compared with $144.0 million or $2.06 per share in the year-ago
quarter. The loss per share was also better than the Zacks
Consensus Estimate of a loss of $1.63 per share.
Revenues declined 12.4% year over year to $2.6 billion in the
quarter, missing the Zacks Consensus Estimate of $2.8 billion.
The year-over-year decline in revenues was due to sluggish
industry demand and lower market share of the company due to its
transition to clean engine systems as per EPA regulation.
Few stocks that are performing well in the industry where
Navistar operates include
STRATTEC Security Corporation
China Zenix Auto International Limited
). Strattec Security and Gentherm are Zacks Rank #1 (Strong Buy)
stocks while China Zenix Auto carries a Zacks Rank #2 (Buy).