Layne Christensen amends interest rate to Libor plus 325 bps via PNC

By Susanna Moon

Chicago, Sept. 18 – Layne Christensen Co. amended its credit agreement Monday with PNC Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Interest was amended to Libor plus 325 basis points until the last day of the first quarter after which the company achieves a consolidated fixed-charge coverage ratio of at least 1.00 to 1.00 for two consecutive fiscal quarters.

The amendment also excludes from the borrowing base an amount equal to the net book value of specialized equipment, which the company’s surety has the right to use to complete bonded contracts, with the amount initially equal to $7 million.

Finally, the amendment requires the company to deliver additional monthly and quarterly reports to the administrative agent and to retain a third-party expert to review the company’s construction contracts.

Layne Christensen is a water management, construction and drilling company based in the Woodlands, Texas.

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