Harley secures £250 million loan to cover losses

Instability in capital markets behind loss, say company

US MOTORCYCLE manufacturer Harley-Davidson's financial services division has secured almost £250 million in retail motorcycle loans for an estimated loss of between £2 million and £2.8 million, according to New York Associated Press.

Instability in the capital market was behind the loss, the company said. Out of a total transaction amount of £246 million, Harley-Davidson Financial Services Inc. retained notes for £28 million in retail motorcycle loans.

Additionally, the company said it has entered into a new £148 million credit facility, which will provide additional liquidity to its unsecured commercial paper program and help fund operations.

As a result of the new facility, Harley-Davidson Financial Services may issue commercial paper of up to £850 million with maturities of up to one year from the issue date, according to the filing with the Securities and Exchange Commission.

Harley-Davidson shares fell 22 cents to $37.83 (around £18.80) in afternoon trading.