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Dolan enters new $205 million five-year facility via lead U.S. Bank
By Jennifer Chiou
New York, Dec. 7 - Dolan Co. announced that it entered into a new $205 million credit facility with an expansion feature, allowing the company to increase borrowings by $45 million to $250 million under certain circumstances.
U.S. Bank, NA is the lead bank, with Wells Fargo Bank, NA as the syndication agent and participation from Associated Bank, NA, Bank of America, NA, Bank of the West and Comerica Bank.
The new facility represents an increase from the company's current $178 million facility. It includes a $155 million revolver and a $50 million term loan, plus the $45 million accordion feature.
Borrowings will bear interest at Libor plus 200 basis points to 350 bps.
According to an 8-K with the Securities and Exchange Commission, the credit agreement requires the company and its consolidated subsidiaries to keep their senior leverage ratio at no more than 3.00 to 1.00, or 3.50 to 1.00 following an acquisition triggering event; fixed-charge coverage ratio lower than 2.00 to 1.00; and adjusted EBITDA for the previous two fiscal quarters under $27.5 million, which may increase up to $35 million.
Proceeds are earmarked for working capital, growth initiatives and strategic acquisitions.
"Although maturities on our previous credit facilities were scheduled to begin in 2012, we chose to take advantage of attractive market conditions to secure more flexible, longer-term access to capital to support our ambitious growth plans," James P. Dolan, chairman, president and chief executive officer, said in a news release.
Dolan Media is a Minneapolis-based provider of business information and professional services to the legal, financial and real estate sectors.
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