AUBURN HILLS, Mich., Jan. 20 /PRNewswire-FirstCall/ --
Champion Enterprises, Inc. (NYSE: CHB) today announced that its wholly-owned
subsidiary, Champion Home Builders Co., has entered into a three-year, $75
million revolving credit facility with Congress Financial Corporation
(Central), a subsidiary of Wachovia Bank, N.A. The facility will be used for
general corporate purposes and in support of the company's letters of credit.
Previously, Champion did not have a bank credit facility.
Champion's Executive Vice President and Chief Financial Officer, Phyllis
A. Knight, commented, "We're pleased to finalize this credit facility, which
immediately improves our short-term liquidity and provides necessary operating
flexibility for the company. We are now able to free up restricted cash and
cash deposits, which will provide further liquidity cushion. We will continue
to focus on maintaining a strong liquidity position, particularly while
challenging market conditions persist."
Availability under the new line is subject to a borrowing base. Amounts
outstanding under the facility are secured by Champion's assets, including
cash, accounts receivable, inventories, property, plant, and equipment and
other assets. The agreement contains certain financial covenants that require
the company to achieve established targets only in the event that its
liquidity falls below $35 million. At December 28, 2002 the company had $77
million in unrestricted cash, $52 million in restricted cash and $16 million
in cash deposits.
Champion Enterprises, Inc., headquartered in Auburn Hills, Michigan, is
the industry's leading manufacturer and has produced nearly 1.6 million homes
since the company was founded. The company operates 37 homebuilding
facilities in 16 states and two Canadian provinces and 119 retail locations in
24 states. Independent retailers, including 636 Champion Home Center
locations, and approximately 600 builders and developers also sell Champion-
built homes. The company also provides financing for retail purchasers of its
homes. Further information can be found at the company's website,
http://www.championhomes.net .
This news release contains certain statements, including those regarding
liquidity, operating flexibility, freeing up restricted cash and cash deposits
and market conditions, that could be construed to be forward looking
statements within the meaning of the Securities and Exchange Act of 1934.
These statements reflect the company's views with respect to future plans,
events and financial performance. The company does not undertake any
obligation to update the information contained herein, which speaks only as of
the date of this press release. The company has identified certain risk
factors which could cause actual results and plans to differ substantially
from those included in the forward looking statements. These factors are
discussed in the company's most recently filed Form 10-K and other SEC
filings, and those discussions regarding risk factors are incorporated herein
by reference.
SOURCE Champion Enterprises, Inc.
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Related links:
http://www.championhomes.net
Company News On-Call:
http://www.prnewswire.com/comp/110861.html
CONTACT:
Investor and Media Contacts: Phyllis A.
Knight, Chief Financial Officer, +1-248-340-9090, or Colleen T.
Bauman, Investor Relations, +1-248-340-7731, both of Champion
Enterprises, Inc.
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