Exide amends credit facility

New York, June 13 - Exide Technologies Inc. said it completed an amendment to its senior credit facility.

Final terms will be disclosed in a filing with the Securities and Exchange Commission, the company added.

Under proposed terms disclosed last week, Exide was asking for covenant changes in return for an increase in term loan and revolver spreads to Libor plus 500 basis points.

That proposal showed an easing in the consolidated interest coverage ratio, starting at 1.70:1.00 for the fiscal quarter ending closest to June 30 and increasing to 3.50:1.00 by the fiscal quarter ending closest to March 31, 2008 and onwards. The company was also looking to lower consolidated EBITDA requirements starting at $97 million for the fiscal quarter ending closest to March 31 and increasing to $220 million for the fiscal quarter ending closest to March 31, 2009 and onwards. In addition, Exide was looking to modify leverage ratio requirements as well.

The company previously disclosed that it needed to amend its facility because of anticipated non-compliance with the minimum consolidated EBITDA and leverage ratio financial covenants for the fiscal year ended March 31

The Lawrenceville, N.J.-based producer and recycler of lead-acid batteries had said that it estimates adjusted EBITDA for the fiscal year ended March 31 will be in the range of $100 million to $107 million.

Exide also previously explained that the covenant issues primarily relate to the impact of commodity costs, the loss of overhead absorption due to an inventory-reduction initiative, other fourth-quarter inventory valuation adjustments and costs associated with Sarbanes-Oxley compliance efforts.

Deutsche Bank is the administrative agent on the deal.

Exide also said Monday that it obtained pension waivers for plan years 2003 and 2004.

It had previously received a temporary waiver from the Internal Revenue Service of unfunded liabilities of about $50 million for 2003 and 2004, subject to certain conditions, including securing the waived amounts in a manner acceptable to the Pension Benefit Guaranty Corp.

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