Dolan moves up maturity on credit facility, increases pricing

By Marisa Wong

Madison, Wis., Nov. 6 - Dolan Co. entered into on Oct. 31 a sixth amendment to its third amended and restated credit agreement dated Dec. 6, 2010 with U.S. Bank NA as a lender, letter-of-credit issuer, swingline lender, lead arranger, bookrunner and administrative agent and Wells Fargo Bank, NA as a lender and syndication agent.

According to an 8-K filing with the Securities and Exchange Commission, the amendment changes the maturity date of the credit agreement to Dec. 31, 2014 from Dec. 6, 2015 and reduces the amount available in the revolving credit facility to $39.5 million from $40 million after Sept. 30, 2014.

The amendment also increases the applicable interest rate by 100 basis points, requires payment of initial and ongoing fees, including a fee of 1% of the total outstanding loan commitment on April 1, July 1, and Oct. 1, 2014.

In addition, the amendment waives the company's default with respect to some financial covenants as of Sept. 30, adds a new financial covenant related to the senior leverage ratio and makes other adjustments to the facility's covenants and restrictions.

Further, under the amended agreement, the company must generate $50 million in cash through one or more liquidity transactions separate from its operating activities, such as a sale of assets or issuance of equity or subordinated debt, by March 31.

At the very least, the company must enter into a definitive agreement by March 31 for such a liquidity transaction that will close by May 31, 2014. Proceeds will be used to pay down outstanding loans under the credit agreement.

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