NEW YORK, Sept 25 (Reuters) - H&R Block Inc HRB.N, the largest U.S. tax preparer, on Tuesday said a unit drew down $250 million from its bank credit lines because it couldn't sell short-term debt, in at least the third drawdown in six weeks.
The company in a regulatory filing said its Block Financial Corp. unit on Monday borrowed the sum from credit facilities that total $2 billion and mature on Aug. 10, 2010.
H&R Block said the borrowings “provide a more stable source of funds to support Block Financial Corp’s short-term needs in light of recent market conditions that have negatively impacted the availability and term of commercial paper.”
Last month, Kansas City, Missouri-based H&R Block said Block Financial drew down $200 million from working capital on Aug. 16, and repaid it with a draw of $850 million four days later.
H&R Block lost $736.2 million in the 15 months ended July 31. It is trying to salvage a sale of all or part of its money-losing Option One Mortgage Corp. unit to private equity firm Cerberus Capital Management LP. On Sept. 6, a slate proposed by dissident shareholder Richard Breeden won three seats on H&R Block’s board of directors.
Shares of H&R Block closed Monday at $20.77 on the New York Stock Exchange. They have fallen 9.9 percent this year. (Reporting by Jonathan Stempel)
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