07.07.2011

Manitex agrees new credit line

Manitex the US based boom truck and Rough Terrain crane manufacturer, has reached agreement with its principal bank, Comerica, for a four year renewal of its revolving credit facilities for its North American operations which increases its total borrowing capacity to $30 million.

Manitex International's existing banking facilities with Comerica, totalled $26.5 million and were due to mature on April 1st next year and included, a term loan, and stand-by letter of credit. The renewal extends the maturity to April 1st 2015.

The renewal also reduces interest costs by 150 basis points, and modifies advance formulas which increase the total amount the company may borrow. Comerica has also agreed a $1.85 million four year term loan, to assist with the purchase of the assets of Italian based reach stacker manufacturer CVS SpA which completed on July 1st .

Manitex chief operating officer Andrew Rooke said: "We are very pleased to extend and expand our Credit facilities with Comerica Bank, with whom we have had a long and mutually beneficial relationship. Comerica understands our business and has demonstrated confidence in our ability to effectively run our operations. The four year renewal, which increases our total credit line, provides the security and resources necessary for us to continue growing our company. In addition, the reduction in interest rates will help lower our total average borrowing costs and will immediately benefit our bottom line and in turn our shareholders".