MAAX amends loan, getting forbearance agreement, to pay coupon on 9.75% notes

By Sara Rosenberg

New York, Jan. 8 - MAAX Holdings Inc. amended its credit facility, getting lenders to agree to forbear from pursuing the potential event of default regarding non-compliance with the minimum consolidated adjusted EBITDA covenant, according to a news release.

The company also said that it will make the Dec. 17, 2007 interest payment on its 9.75% senior subordinated notes prior to the end of the 30-day grace period, which will bring it back into full compliance with the notes.

The forbearance agreement is in effect until Feb. 1, with the option to extend to March 19.

Under the agreement, the company will have full access to its existing revolving credit facility.

"This agreement protects all stakeholders and allows us to continue with 'business as usual' for our customers, suppliers and employees. This puts MAAX on stronger financial footing as we continue to discuss full capital restructuring solutions with our bondholders," said Paul Golden, president and chief executive officer, in the release.

A forbearance fee was paid to lenders of 1.25% on the revised commitment amount under the existing credit facility of $225 million. If the forbearance agreement is extended, an additional fee of 1% will be paid.

The amendment was completed on Jan. 7.

Brookfield Bridge Lending Fund is the administrative agent on the deal.

MAAX is a Montreal-based manufacturer of bathroom and spa products.

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