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The Kneeslider

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Harley Davidson Gets Loan Extension

By Paul Crowe

Harley DavidsonHarley Davidson got some good news when a $500 million loan originally set to expire on March 31 and requiring repayment in full was extended to March 17, 2010. The loan gives the company some breathing room and the stock jumped on the news.

Harley Davidson finances motorcycle sales through its finance arm and then sells securities backed by the loans to investors. No one is buying those securities right now which leaves Harley a little low on cash making this loan extension very good news.

This recession will eventually work itself out and Harley, along with all of the other motorcycle manufacturers, needs to run lean and smart until it does. Everyone wants a strong motorcycle industry and good news for the Motor Company is good news for all of us.

Link: Forbes

Posted on March 19, 2009 Filed Under: Motorcycle Business


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Comments

  1. James says

    March 19, 2009 at 9:06 pm

    “needs to run lean and smart until it does” So let me get this straight, once the recession is over it can run fat and stupid?? Which will cause it to get in trouble again most likely.

  2. rafe03 says

    March 20, 2009 at 1:18 am

    Just as smart as the rest of us!

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