Blue Bird gets covenant relief in third credit amendment

By Taylor Fox

New York, Dec. 9 – Blue Bird Corp. entered into a third amendment to its credit agreement on Wednesday to provide for covenant relief through its second-fiscal quarter of 2022, according to a news release.

For the fiscal 2021 period, the net leverage ratio is replaced by a minimum trailing 12-month EBITDA quarterly covenant and a monthly liquidity test.

The third amendment also provides for a higher net leverage ratio for the first half of fiscal 2022.

Other terms of the amended credit facility include a higher borrowing cost of 50 basis points on borrowings, 25 bps higher on the unused line fee, a cash sweep provision and lower total availability on its revolving commitments.

Blue Bird may revert back to the original terms and conditions if it chooses to terminate the covenant relief granted by the third amendment.

Based in Fort Valley, Ga., Blue Bird designs and manufactures school buses.

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