Projo Biz Blog

Providence-based Textron made a $625 million cash payment to its Textron Financial Corp. unit to meet ratio and leverage requirements.

Textron made the payment Dec. 29, according to a filing today with the U.S. Securities and Exchange Commission. As part of the transaction, Textron Financial will issue the parent company 100 shares of common stock at $100 par value, the filing said. The transaction doesn't increase outstanding debt at either entity.

The company said Dec. 22 it planned to contribute about $600 million to the unit while exiting all finance businesses except those that directly serve its manufacturing divisions.

Textron also said last month that profit in the fourth quarter would be will be less than half what was previously forecast, hurt by finance unit losses.

Textron also plans to dispose of $7.9 billion of the finance unit's $11.4 billion in managed receivables, more than the $2 billion previously targeted, the company said.
Textron is also cutting 2,200 jobs to pare costs amid the global economic slowdown.

 Tags  Textron Textron Financial Corp.

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