UPDATE 1-Monaco Coach says debt funding delayed
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Nov 6 (Reuters) - Recreational-vehicle maker Monaco Coach Corp MNC.N said funding under its new debt financing programs was delayed Thursday, a day after it announced the agreements.
The company said it is working with the lending group to resolve the issue.
Monaco Coach, mired in losses due to a prolonged slump in consumer spending, had on Wednesday announced two new definitive financing arrangements for $129.3 million.
The first is a three-year $90 million revolving working capital loan and security agreement with a group of lenders led by Bank of America.
The second is a secured financing agreement with Ableco Finance LLC for a $39.3 million 3.5-year secured term loan.
The company was expecting to pay off and retire its existing credit facility with the new loan agreements.
A rash of problems, including soaring fuel prices, a housing market slump and a weakening economy, have ravaged motor-home makers over the past year as buyers keep away from showrooms.
During the third quarter, Monaco Coach closed three plants, cutting its Class A motorized capacity by nearly 50 percent, and suspended its dividend in an attempt to match demand and market conditions. (Reporting by Saumyadeb Chakrabarty in Bangalore; Editing by Amitha Rajan)
