STAMFORD, CT – HARMAN (NYSE: HAR), the premium global audio and infotainment group, today announced it has secured a new five-year US $550 million credit facility available until December 2015. The new facility will replace an existing three-year US $232 million revolving credit facility set to expire at the end of 2011.
The terms of the new facility reflect HARMAN’s strengthening credit profile, as noted by recent upgrades by rating agencies Moody’s and Standard and Poor's. The transaction was initially launched at $350 million but increased to $550 million after strong market interest. The new facility provides assured access to liquidity, giving the company additional financial flexibility.
“The renewed credit facility, combined with our strong cash position, provides HARMAN with the strategic flexibility to continue our long term growth plans and investments in R&D, emerging market expansion, and bolt-on acquisitions,” said Dinesh C. Paliwal, Chairman, President, and Chief Executive Officer. “Clearly, this agreement reflects the ongoing confidence of the banking and investment community in HARMAN as we deliver on a backlog of over $12 billion in automotive business.”
HARMAN (www.harman.com) designs, manufactures and markets a wide range of audio and infotainment solutions for the automotive, consumer and professional markets – supported by 15 leading brands including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon® and Mark Levinson®. The Company is admired by audiophiles across multiple generations and supports leading professional entertainers and the venues where they perform. More than 20 million automobiles on the road today are equipped with HARMAN audio and infotainment systems. HARMAN has a workforce of about 11,000 people across the Americas, Europe and Asia, and reported sales of $3.5 billion for the twelve months ending September 30, 2010. The Company’s shares are traded on the New York Stock Exchange under the symbol NYSE:HAR.