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Maytag Installs $500 Mil. Credit Facility

Maytag has signed a commitment letter for a $500 million five-year, senior secured revolving credit facility, which will be secured by accounts receivable and inventory for certain company subsidiaries.

The major appliance maker also has obtained an amendment to its current $300 million revolving credit facility, due March 2007, which eases covenant requirements. Therefore, the current $300 million credit facility would be replaced by the $500 million credit facility, providing Maytag with substantially more covenant flexibility and funding security to meet liquidity and long-term financing requirements.

Currently, the company is considering two acquisition offers, including a proposal from Chinese majap maker Haier, which, along with its investment partners, has made a $1.28 billion bid for Maytag.