Clayton amends loan, reducing revolver size, increasing pricing

By Sara Rosenberg

New York, Feb. 27 - Clayton Holdings Inc. amended its credit facility, reducing the revolver size to $10 million from $50 million and raising pricing on the facility by 125 basis points to 300 bps, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

In connection with the amendment, the lenders waived compliance with the existing financial covenants until March 31, 2009 and added a new financial covenant that requires the company to maintain a minimum $6 million of liquidity.

The new liquidity covenant will be effective until the date on which the company delivers financial statements for the fiscal quarter ending March 31, 2009.

Also as part of the amendment, the company prepaid $25 million of its term loan debt and has agreed to prepay an additional $5 million of the term loan on or before March 31, 2009.

The amendment was completed on Feb. 21.

BNP Paribas is the administrative agent on the deal.

Clayton is a Shelton, Conn.-based provider of a suite of outsourced services, mortgage-related analytics, and specialized consulting services for buyers and sellers of, and investors in, mortgage-related loans and securities, and other debt instruments.

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