Tecumseh Products Company Announces its European Subsidiary is Entering into a
Three Year Factoring Agreement
ANN ARBOR, Mich., June 25, 2013
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 June19, 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
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: Janice Stipp
SOURCE Tecumseh Products Company
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