Nebraska Book loan amendment changes pricing to Libor plus 600 bps

By Sara Rosenberg

New York, Feb. 5 - Nebraska Book Co. Inc.'s senior credit facility amendment revised pricing to Libor plus 600 basis points on all tranches and added a 3.25% Libor floor, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

As was previously reported, the amendment also extended the revolver until May 31, 2010, reduced the revolver size to $65 million from $85 million and changed certain financial ratios.

The consolidated leverage ratio is now set at 6.25 to 1.0 for the quarter ended Dec. 31, going to 5.75 to 1.0 at March 31, 6.50 to 1.0 at June 30, 5.50 to 1.0 at Sept. 30, 2009, 6.25 to 1.0 at Dec. 31, 2009, 5.25 to 1.0 at March 31, 2010 and 4.50 to 1.0 thereafter.

The consolidated interest coverage ratio is now set at 1.60 to 1.0 for Dec. 31 through March 31, 2010, and 2.00 to 1.0 thereafter.

And the consolidated fixed-charge coverage ratio is now set at 1.15 to 1.0 for Dec. 31 though March 31, 2010, and 1.25 to 1.0 thereafter.

In connection with the closing of the extension and amendment, Nebraska Book's majority equity holder, Weston Presidio, invested $10 million into the company.

The amendment was completed on Feb. 3.

JPMorgan is the administrative agent on the deal.

Nebraska Book is a Lincoln, Neb.-based provider of new and used textbooks.

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