AM General negotiating loan to repay upcoming $47.5 million maturity of senior notes

New York, March 18 - AM General Corp. said it is negotiating with several financial institutions for a new loan which it will use to repay the $47.5 million of its senior notes that mature on May 1, 2002.

The company said in a filing with the Securities and Exchange Commission that it believes it will be able to refinance the debt by the scheduled maturity date or sooner.

Based on discussions with potential lenders, AM General said its 2001 cash flows would support the necessary borrowing "within the current parameters of other such loans for companies of similar size and credit worthiness."

AM General added that it believes it can amortize the debt without significant levels of new business but noted that the H2 agreement with General Motors Corp. provides the potential for significant additional cash flows.

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