Dan River amends loan, waiving leverage violation, revising fourth quarter covenants

By Sara Rosenberg

New York, Oct. 14 - Dan River Inc. amended its senior secured credit facility, waiving the maximum leverage ratio covenant violation that existed at the end of the third quarter and revising requirements during the fiscal fourth quarter, including the minimum levels of excess availability under the revolver and monthly operating EBITDA, according to a filing with the Securities and Exchange Commission.

As previously disclosed, the company anticipated having difficulty meeting financial covenant requirements in the fourth quarter of fiscal 2003 unless there was a significant improvement in current business activity.

As for the third quarter violation, net sales declined to $104 million, down $44 million or 30% from the third quarter of fiscal 2002, causing EBITDA to be less than expected and in excess of specified levels of indebtedness to EBITDA.

Deutsche Bank is the agent on the credit facility.

Dan River is a Danville, Va. designer, manufacturer and marketer of products for the home fashions and apparel fabrics markets.

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