LISLE, IL — The truck and engine manufacturer Navistar International Corp. on Monday announced it is refinancing a loan to improve the company’s liquidity and financial flexibility.

A US$697.5 million senior secured term loan, which matures in August 2017, is being replaced with a US $1.040 billion package that will mature in August 2020.

“The company’s financial condition and results continue to improve steadily, and we have begun to generate positive cash flow,” said Walter G. Borst, Navistar’s chief financial officer. “We’re investing in new products and advancing on our uptime strategy in the market, driven by our focus on connected vehicles. The term loan renewal will provide us additional flexibility to pursue these initiatives while extending our debt maturity profile.”

According to published reports stock in Navistar has lost 4.38% during the past week and dropped 20.97% in the last 4 weeks. Year-to-date the stock performance is down 44.62%.

Investor Newswire reports analysts are anticipating the company will report earnings per share of US$0.21 for the fiscal quarter ending on July 31, which are set to be reported in early September.

The company will be trying to improve on the previous quarter’s numbers of earnings per share showing a loss of US$0.57 for the previous quarter, $0.40 more than expected, according to a consensus of analysts.