A. H. Belo amends loan, reducing size, increasing pricing, waiving fixed-charge covenant

By Sara Rosenberg

New York, Oct. 24 - A. H. Belo Corp. amended its credit facility, reducing the size to $50 million from $100 million, raising pricing to Libor plus 250 basis points and waiving the fixed-charge ratio through Jan. 31, 2009, according to an 8-K filed with the Securities and Exchange Commission Friday.

In addition, the amendment restricts the payment of cash dividends during the waiver period and provides a security interest in the accounts receivable and inventory.

The amendment does not apply to the dividend declared on Sept. 24 to be paid on Nov. 10.

"We are pleased with the added financial flexibility provided in this amendment - although at a higher cost - because it provides room for us to make the best strategic and operational decisions to maximize long-term shareholder value and uphold our brand equity," said Robert W. Decherd, chairman, president and chief executive officer, in a news release.

"The board of directors and management committee are using all available alternatives to improve A. H. Belo's financial position and enable the company to manage through the current combination of cyclical and secular pressures, including the nation's economic downturn," Decherd added in the release.

The amendment is effective as of Oct. 23.

JPMorgan is the administrative agent on the deal.

A. H. Belo is a Dallas-based news and information company.

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