UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 3, 2000
NAVISTAR FINANCIAL CORPORATION
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(Exact name of Registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
1-4146-1 36-2472404
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(Commission File Number) (I.R.S. Employer Identification No.)
2850 West Golf Road Rolling Meadows, IL 60008
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code 847-734-4000
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FORM 8-K
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events.
In August 2000, Navistar Financial Corporation (NFC) securitized the
retail accounts that arise out of sales of trucks on open account by
International Truck and Engine Corporation (International). On a regular basis
International transfers the receivables to NFC, which in turn transfers the
receivables to Truck Retail Accounts Corporation (TRAC), a wholly-owned, special
purpose entity of NFC. TRAC, in turn, sells an undivided interest in the retail
accounts to a bank conduit. This transaction is structured on a revolving basis
and provides for up to $100 million of funding. TRAC retains an interest in the
retail accounts, which is subordinated to the bank conduit's investment as
protection against losses, dilution and carrying costs.
On October 16, 2000 Truck Retail Instalment Paper Corp., a
wholly-owned, special purpose entity of NFC, terminated the previously existing
$400 million Asset-Backed Commercial Paper facility and issued $475 million of a
senior class and $25 million of a subordinated class of floating rate
asset-backed notes. The proceeds were used to establish a revolving retail
warehouse facility for NFC's retail notes and retail leases, other than fair
market value leases.
On November 1, 2000 NFC issued $764.7 million in asset backed
securities through Navistar Financial Retail Receivables Corporation, a
wholly-owned, special purpose entity of NFC. The gain on this sale will be
approximately $4.5 million. The proceeds, net of underwriting fees and credit
enhancements, were used by NFC for general working capital purposes and to make
payments on various intercompany obligations.
NFC is in the process of securitizing all of its unsecured trade
receivables generated by the sale of diesel engines and engine service parts
from International to Ford, which securitization is expected to raise
approximately $100 million.
In November 2000 NFC has also signed a term sheet to enter into a new
senior credit agreement with certain of its existing lenders and new lenders.
The terms of the new senior credit agreement are still being finalized. Based
upon discussion held to date, the new credit agreement is anticipated to provide
for aggregate borrowings of at least $700 million and will mature in November
2005. Under the new credit agreement, Navistar International's three Mexican
finance subsidiaries will be permitted to borrow up to $100 million in the
aggregate, which will be guaranteed by NFC.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NAVISTAR FINANCIAL CORPORATION
(Registrant)
Date: November 3, 2000 By: /s/ RONALD D. MARKLE
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Ronald D. Markle
Vice President & Controller
(Principal Accounting Officer)
