Global Gets New Financing Package
December 20, 2004
Filed under Features
Global Motorsport Group, Inc., Morgan Hill, Calif., has obtained a new three-year $90 million credit package. The international distributor has been working on a refinancing package for nearly a year. Proceeds from the new credit facility will be used to pay down the company’s existing debt and provide working capital, a company spokesman said.
Global and its subsidiaries, Custom Chrome and Motorcycle Stuff, had been struggling with a tight cash position since late last year that had resulted in reduced inventories, declining fill rates and strained vendor relations, in some cases.
The company said in October that its fill rates had improved to the middle 90% range and that it had been current with vendors for the last three months.
“We can now refocus our efforts on serving the motorcycle community,” John Lott, executive vice president and COO, said in a prepared statement announcing the new financing.
Global Motorsport Group, Inc., designs, manufactures, markets and distributes aftermarket motorcycle parts and accessories through a network of independent dealers throughout North America, Europe and Asia/Pacific.