AIRBORNE ACQUIRES $200 MILLION IN FINANCING
Seattle-based Airborne Inc. said Thursday it has completed $200 million in accounts-receivable-backed financing, to be used for paying down loans under its bank credit facilities.
Blue Ridge Asset Funding Corp., a commercial paper funding vehicle administered by Wachovia Bank N.A. provided the three-year financing facility. Wachovia Bank also provided a backup financing facility on a committed basis.
“Through this new credit facility, we gain additional committed liquidity above our $275 million committed bank revolving line of credit, while reducing our annual borrowing costs approximately $1 million on a prospective basis,” said Lanny Michael, chief financial officer.
To facilitate the transaction, Airborne Express Inc., a wholly owned subsidiary of Airborne Inc., sold a defined pool of accounts receivable to a limited purpose subsidiary, Airborne Credit Inc.
The subsidiary owns all of its assets and sells participating interests in such accounts receivable to Blue Ridge. As collections reduce accounts receivable, Airborne Credit sells new receivables. Airborne Express acts as servicing agent for the receivables.