Autoliv taps revolver for $500 million given virus impact on operations

By Marisa Wong

Los Angeles, March 19 – Autoliv, Inc. said it has drawn down $500 million of its existing committed $1.1 billion revolving credit facility with 14 international banks that matures in July 2023.

Autoliv intends to use $300 million of the drawdown to pay existing short-term debt maturities for the next three months, according to a press release. The company plans to use the remaining amounts for general corporate purposes.

The remaining $600 million of the facility is still available to the company for further potential drawdown.

Availability of the facility is not subject to any financial covenants, nor is any other substantial financing of Autoliv subject to any financial covenants, the company noted.

For the remainder of 2020, the company’s only major debt maturity is €100 million in December.

Autoliv said it has since early February been taking decisive actions to mitigate the impacts of the Covid-19 outbreak, firstly to ensure the health and wellbeing of its employees and also to establish the right balance of capacity and cost.

The company said it has been able to secure a well-functioning supply chain so far and that its operations in China have gradually recovered over the past few weeks.

Autoliv is a Stockholm-based automotive safety systems company.

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