Lenders Grant Cendant $3.25 Billion Credit Facility
Cendant Corp has entered into a new $3.25 billion term loan credit facility with the Chase Manhattan Bank and a syndicate of 20 other lenders which grants it access to that amount for working capital purposes.The credit facility was increased from $2 billion because of strong reception from the banking syndicate. It is also an indication that the banks believe financial problems stemming from Cendant's April disclosure of accounting irregularities will not affect its ability to pay back the loan, which is repayable on May 28, 1999.
The transaction will give Cendant, Parsippany, NJ, combined credit facilities and cash well in excess of the amount needed to close the acquisitions of American Bankers Insurance, RAC Motoring Services and Providian Auto.
