Consolidated-Tomoka amends credit agreement’s stock repurchase terms

By Wendy Van Sickle

Columbus, Ohio, April 19 – Consolidated-Tomoka Land Co. entered an April 13 amendment to its amended and restated credit agreement with Bank of Montreal as administrative agent that modified the section of the agreement pertaining to permitted stock repurchases by the company, according to an 8-K filing with the Securities and Exchange Commission.

The amendment reduces the coverage ratio that must be met before the company may repurchase shares of its own stock to 1.5 times from 1.75 times.

Additionally, the amendment adds the gains from the sale of unimproved land, including the sale of subsurface interests or the release of surface entry rights, net of taxes incurred, to the calculation of adjusted EBITDA for the purpose of determining the coverage ratio.

As of the date of the amendment, the company met the coverage ratio and therefore may make additional repurchases of its common stock under its existing $10 million repurchase program, subject to black-out periods and other restrictions.

Daytona, Fla.-based Consolidated-Tomoka is a real estate development company.

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