American Homestar Announces Changes in Its Inventory Credit Line with Associates.Business Editors HOUSTON--(BUSINESS WIRE)--June 6, 2003 American Homestar Corporation today announced that it has amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its inventory financing Inventory financing Used in the context of factoring and general finance to refer to loans to consumer product producers that use inventory as collateral. See also: Inventory loan. agreement with Associates Housing Finance, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . ("Associates") to allow for a pay-down Pay-down In a Treasury refunding, the amount by which the par value of the securities maturing exceeds that of those sold. In the context of general equities, paying a lower price in an accumulation of stock. Antithesis of pay-up. , using approximately $5.7 million held by the Associates in a restricted cash collateral account. Under the financing agreement, all net cash proceeds from the sale or lease of the Company's idle facilities have been deposited into the cash collateral account and those funds are otherwise unavailable to the Company. Proceeds from the future sale or lease of idle facilities will also be available for further debt reduction, under certain circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , at the Company's option. As part of this amendment, maximum borrowings under the inventory credit line were also voluntarily reduced to $12 million. The inventory credit line originally provided for borrowings of up to $38 million; however, maximum outstanding borrowings peaked at approximately $21 million and have since been significantly reduced as the Company adjusted inventory levels and embarked on new marketing initiatives. After the $5.7 million pay-down, the amount outstanding was approximately $6.8 million. Craig Reynolds Craig Reynolds can refer to:
Costs that increase with increases in the level of investment in current assets. . The Company will save approximately $260,000 per year. In addition, given our current size, a $12 million inventory line is more than sufficient at this time." American Homestar is a Texas-based, regional, vertically integrated, factory-built housing company that produces and sells both modular and HUD-code homes and also provides financing, insurance and transportation services to its customers. For more information about the Company, visit its website at www.americanhomestar.com |
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