RV manufacturer Thor Industries has paid off the outstanding balance of its $500 million credit facility, the company announced in a press release.
Thor Industries first opened the credit facility in July 2016 to help partially fund its acquisition of Jayco Inc., a manufacturer of RVs, motorhomes, and camping trailers. The $500 million facility will remain open for any future borrowing until the maturity date of June 30, 2021.
Typically, a credit facility is a type of loan wherein the borrower has a sum of money that is available to them at any time, as opposed to a traditional loan where all of the money is received at once. It’s often used by businesses to provide capital for multiple purposes and time frames without the need to structure a loan for each one.
“Given the elimination of our debt, our healthy balance sheet, debt availability and historically strong cash flow, we now plan to embark on the next phase of our capital allocation strategy,” Bob Martin, president and chief executive of Thor, said. “We will remain primarily focused on driving organic growth in our current businesses through investments in prudent capacity additions, technology and product innovation. We also intend to continue to seek and fund selective, opportunistic and accretive global growth opportunities.”
In addition to paying off the credit facility, Thor has been authorized by its board of directors for the repurchase of up to $250 million of the company’s common stock over the next two years on the open market. This authorization is in effect until June 19, 2020, and potential repurchases will occur from time to time depending on market conditions.