Five-year term loan and revolving line of credit provide more than $1 billion in liquidity
STAMFORD, CT – Harman International Industries, Incorporated, the leading global audio and infotainment group (NYSE: HAR) today announced the closing of a senior unsecured credit facility that will provide the Company with more than $1 billion in liquidity.
The new facility is comprised of a $750 million revolving line of credit along with a five-year $300 million term loan. The Company plans to use the proceeds from the term loan, in addition to $100 million of cash on hand, to pay off its $400 million in outstanding convertible senior notes, due October 15, 2012.
Dinesh C. Paliwal, HARMAN’s Chairman, President and Chief Executive Officer, commented, “We are pleased to enter into this new credit agreement, which further strengthens our balance sheet and improves our liquidity, both important competitive advantages. This deal enhances our ability to make substantial continued investments in innovation, diversify globally and support our strong suite of brands.”
The Company’s bank group was led by JP Morgan.
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 25 million automobiles on the road today are equipped with HARMAN audio and infotainment systems. HARMAN has a workforce of about 13,400 people across the Americas, Europe and Asia, and reported net sales of $4.4 billion for the twelve months ending June 30, 2012. The Company's shares are traded on the New York Stock Exchange under the symbol NYSE:HAR.