Ashton Woods amends loan, changing interest coverage and leverage ratios

By Sara Rosenberg

New York, June 20 - Ashton Woods USA LLC amended its credit facility, revising the interest coverage and leverage ratios, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The interest coverage ratio was permanently reduced to 2.00 to 1.00 from 2.50 to 1.00, and a provision was included allowing the ratio to fall to no less than 1.75 to 1.00 for up to three consecutive fiscal quarters in any rolling four-fiscal quarter period ending on or before May 31, 2009.

Furthermore, if the interest coverage ratio is less than 2.00 to 1.00, then the leverage ratio decreases to 2.00 to 1.00 from 2.25 to 1.00, for the fiscal quarter.

The amendment was completed on June 15.

Wachovia is the agent on the deal.

Ashton Woods is a Roswell, Ga.-based homebuilder.

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