Invacare Corporation announced the completion of a new revolving credit and security agreement establishing a $100 million asset-based lending (ABL) senior secured credit facility maturing in January 2018. The new credit facility replaces the Company’s prior senior secured credit facility, which was to mature in October 2015. The borrowing availability under the new credit facility is determined based on, among other things, the value of the Company’s eligible accounts receivable, inventory, machinery and equipment assets in the United States and Canada, up to a maximum aggregate borrowing amount of $100 million.

An SEC 8-K filing from Jan. 16 notes the new credit agreement was entered into by and among the company and PNC Bank, National Association (“PNC”), JPMorgan Chase Bank, N.A., KeyBank National Association, and Citizens Bank, National Association (the “Lenders”). PNC is the administrative agent under the new credit agreement (the “Administrative Agent”).

''Under the new ABL credit facility, the company will not have financial covenant limitations, such as the debt leverage covenant which was in the previous credit agreement. We appreciate the support of our bank group in negotiating this new facility,'' said Robert K. Gudbranson, Interim President and Chief Executive Officer, and Senior Vice President and Chief Financial Officer.

The company’s preliminary aggregate borrowing base under the Credit Facility is approximately $76 million, which is further limited by provisions that are described in the Form 8-K. Additional terms of the credit agreement will be summarized, and a copy of the credit agreement will be provided, in a Form 8-K to be filed by the Company with the United States Securities and Exchange Commission.

View the 8-K filing here.

Invacare Corporation, headquartered in Elyria, Ohio, is a global leader in the manufacture and distribution of innovative home and long-term care medical products that promote recovery and active lifestyles.