ANN ARBOR, Mich., June 25, 2013 /PRNewswire/ -- Tecumseh
Products Company (Nasdaq: TECUA/TECUB), a leading global
manufacturer of compressors and related products, announced today
that its European subsidiary, Tecumseh Europe S.A. has entered into
a three-year Factoring Agreement with GE Factofrance, dated as of
June 19, 2013 and amended as of June
20, 2013.
"We are delighted to be partnering with GE in Europe," said Janice
Stipp, Executive Vice President and CFO. "This will
strengthen our liquidity position, and provide us with necessary
flexibility as we are implementing steps towards rationalizing and
strengthening our business in the European region."
The maximum aggregate amount of the financed eligible
receivables is EUR 40,000,000, which
may be increased by up to EUR
10,000,000, subject to increased turnover, GE Credit
Committee's prior approval and signing an amendment, as set forth
in the Agreement. The Factoring Facility is a limited recourse
facility, which provides non-recourse and with-recourse financing.
Non-recourse financing is for receivables covered by our
subsidiary's credit insurance policy, while financing completely
uninsured receivables is subject to GE's prior review and
acceptance. GE has agreed not to terminate the Factoring Agreement
within a period of thirty-six months, subject to conditions set
forth in the Agreement. Additional details on the Agreement can be
found in our Form 8-K, filed on June 25,
2013.
Tecumseh Products Company is a global manufacturer of
hermetically sealed compressors for residential and specialty air
conditioning, household refrigerators and freezers, and commercial
refrigeration applications, including air conditioning and
refrigeration compressors, as well as condensing units, heat pumps
and complete refrigeration systems. Press releases and other
investor information can be accessed via the Investor Relations
section of Tecumseh Products Company's Website at
www.tecumseh.com.
Contact:
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Janice
Stipp
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Tecumseh
Products
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734-585-9507
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Investor.relations@tecumseh.com
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SOURCE Tecumseh Products Company