Morris Publishing amends loan, reducing revolver size, raising pricing

By Sara Rosenberg

New York, Oct. 8 - Morris Publishing Group LLC amended its credit facility on Wednesday, reducing the revolver size to $100 million from $175 million and increasing revolver pricing, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the revolver was raised to Libor plus 250 basis points from Libor plus 125 bps, with an additional 50 bps increase after March 31, 2009.

The commitment fee was increased to 50 bps from 37.5 bps.

In addition, the amendment relaxed the minimum interest coverage ratio, minimum fixed-charge ratio and maximum cash flow ratio as of Sept. 30 through the delivery date of Morris Communications' financial statements for the quarter ending June 30, 2009, but no later than Aug. 29, 2009.

The amendment also requires Morris Communications and its subsidiaries to complete a transaction, or at least sign a letter of intent to do so, that would generate sufficient funds to be able to prepay all credit facility borrowings, or to purchase an assignment of all loans and commitments of the lenders at par, by the delivery date of Morris Communications' financial statements for the quarter ending March 31, but not later than May 30, 2009.

Furthermore, the amendment reduced the threshold for mandatory prepayments upon asset sales, now generally requiring prepayments when aggregate net cash proceeds on dispositions exceed $5 million, and deleted the exception that would have permitted such proceeds to be reinvested in other assets.

JPMorgan is the administrative agent on the deal.

Morris is an Augusta, Ga.-based media company.

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