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Ciber amends covenants, gets lender consent for $40 million asset sale
By Susanna Moon
Chicago, Jan. 23 - Ciber Inc. obtained the consent of its lenders for the purchase agreement with CRGT Inc. for the sale of substantially all of the assets of its federal division for $40 million in cash, according to an 8-K filed with the Securities and Exchange Commission.
The company agreed to get at least $30 million for the assets and use proceeds in excess of $25 million to reduce its revolving credit commitments.
In connection with the asset sale, the company amended its credit agreement with Bank of America, NA as administrative agent, lender, swing line lender and letter-of-credit issuer.
Ciber also modified the financial covenants in the credit agreement to take into account the effects of the deal.
The maximum consolidated total leverage ratio, of funded debt divided by EBITDA, may not be more than 3.5 times on Dec. 31, no more than 2.75 times on March 31, no more than 1.75 times on June 30, no more than 1.75 times on Sept. 30, 2012 and no more than 1.75 times on Dec. 31, 2012.
The minimum consolidated fixed charge coverage ratio, of EBITDA minus capital expenditures divided by the sum of tax expense plus interest expense plus scheduled funded debt payments plus any restricted payments, must be at least 0.5 times on Dec. 31, at least 0.5 times on March 31 and at least 1.05 times on June 30. The minimum consolidated fixed charge coverage ratio increases to 1.15 times on Sept. 30, 2012 and to 1.2 times on Dec. 31, 2012.
The company must maintain 12-month consolidated EBITDA of at least $30.2 million on Dec. 31, at least $30.3 million on March 31, at least $46.5 million on June 30, $47.1 million on Sept. 30, 2012 and $46.8 million on Dec. 31, 2012.
Ciber is a Greenwood Village, Colo.-based system integration and information technology services consulting company.
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