News Releases

« Back

Oshkosh Corporation Announces Refinancing of Senior Debt

09/29/2010

OSHKOSH, Wis., Sep 29, 2010 (BUSINESS WIRE) -- Oshkosh Corporation (NYSE: OSK), a leading manufacturer of specialty vehicles and vehicle bodies, today announced that it has refinanced its existing senior secured credit facilities with $1.2 billion of new senior secured credit facilities. The new facilities are comprised of a $550 million revolver, of which $150 million is currently drawn, and a $650 million term loan.

The new facilities extend the final maturity date of the loans to October 2015, feature a lower interest rate spread over LIBOR and allow for more flexibility in operating the business for the next five years.

The interest rate for borrowings under the new facilities will be at a variable rate initially equal to LIBOR plus 300 basis points per annum, but can change based on the Company's Leverage Ratio, as defined in the credit agreement. The new facilities are subject to affirmative, negative and financial covenants that are generally more favorable to the Company than those under the existing facilities. The Company will describe the covenants more fully in its filings with the Securities and Exchange Commission.

About Oshkosh Corporation

Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corporation manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®,McNeilus®, Medtec®, Jerr-Dan®, Oshkosh Specialty Vehicles, Frontline(TM), SMIT(TM), CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, visit http://www.oshkoshcorporation.com.

®, (TM) All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

Forward-Looking Statements

This press release contains statements that the Company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this presentation, words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "project" or "plan" or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the impact on revenues and margins of the projected decrease in M-ATV production rates; the cost of any warranty campaigns related to the Company's products; the Company's ability to start production under the FMTV contract at targeted margins; the cyclical nature of the Company's access equipment, commercial and fire & emergency markets, especially during periods of global economic weakness and tight credit markets; the duration of the ongoing global economic weakness, which could lead to additional impairment charges related to many of the Company's intangible assets and/or a slower recovery in the Company's cyclical businesses than equity market expectations; the expected level and timing of U.S. DoD procurement of products and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; the potential for the U.S. government to competitively bid the Company's Army and Marine Corps contracts; the consequences of financial leverage associated with the JLG acquisition, which could limit the Company's ability to pursue various opportunities; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; risks related to production delays as a result of the economy's impact on the Company's suppliers; the potential for commodity costs to rise sharply, particularly in a future economic recovery; risks related to costs and charges as a result of facilities consolidation and alignment; risks associated with international operations and sales, including foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; risks related to disruptions in the Company's distribution networks; and the potential for increased costs relating to compliance with changes in laws and regulations. Additional information concerning these and other factors is contained in the Company's filings with the Securities and Exchange Commission. The Company disclaims any obligation to update such forward-looking statements.

SOURCE: Oshkosh Corporation

Oshkosh Corporation
Financial:
Patrick Davidson
Vice President of Investor Relations
920.966.5939
Media:
John Daggett
Director of Communications
920.233.9247