Anchor BanCorp enters forbearance agreement on amended, restated loan

By Jennifer Chiou

New York, June 1 - Anchor Bancorp Wisconsin Inc. entered into an amended and restated credit agreement on Tuesday, providing for outstanding borrowings to bear interest at 15% per year from time to time, according to an 8-K filing with the Securities and Exchange Commission.

U.S. Bank NA is the administrative agent.

Under the amendment, the agent and lenders agreed to forbear from exercising their rights and remedies against Anchor until the earliest of any event of default, other than a failure to make principal payments on the outstanding balance or existing defaults, or Nov. 30, 2011.

The Madison, Wisconsin savings and loan holding company said that the updated agreement also states that accrued interest is due on the earlier of the date the loans are paid in full or at maturity on Nov. 30, 2011.

In addition, Anchor BanCorp is required to maintain the following financial covenants at all times:

• A tier 1 leverage ratio of not less than 3.95%;

• A total risk based capital ratio of not less than 7.65%; and

• A ratio of non-performing loans to gross loans not to exceed 12%.

The outstanding amount under the loan as of Tuesday was $116.3 million.

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