Integrated Electrical amends loan, temporarily eliminating fixed-charge coverage ratio

By Sara Rosenberg

New York, Nov. 14 - Integrated Electrical Services Inc. amended its $80 million revolving credit facility, eliminating the fixed-charge coverage ratio for the periods ended Sept. 30 and Oct. 31, according to a company news release.

Furthermore, based on preliminary results for September, the company believes it will need to amend the fixed-charge coverage ratio once again prior to Dec. 30.

Other changes were made to the credit facility as well - the interest rate will be increased by 50 basis points during the period ending on the earlier of March 31, 2006 or when the lender syndicates the credit facility, and the company is required to maintain a minimum borrowing availability under the facility of at least $12 million, or if availability falls below $12 million, cash collateral must be provided in the amount of the shortfall.

Bank of America is the lead bank on the credit facility.

The amendment was completed on Nov. 11.

The company continues to pursue initiatives and discussions with third parties related to its previously announced intention to take steps to strengthen its balance sheet, including exploring alternatives to refinance or de-lever all or a part of its long-term debt, the release added.

Integrated Electrical Services is a Houston-based provider of electrical solutions to the commercial and industrial, residential and service markets.

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