Eagle Materials to place up to $75 million of notes with John Hancock

By Lisa Kerner

Charlotte, N.C., Sept. 7 - Eagle Materials Inc. entered into a two-year master shelf agreement on Aug. 31 to sell up to $75 million of its senior notes to John Hancock Life Insurance Co. (U.S.A.) or its affiliates, according to a form 8-K filing with the Securities and Exchange Commission.

The notes must be sold in a principal amount of at least $5 million. To date, no notes have been requested under the agreement.

The tenor and pricing of any notes sold will be determined at the time of sale, the filing said.

The shelf agreement contains customary covenants that place limits on Eagle Materials' ability to encumber its assets and to incur additional debt. Specific financial covenants require that the company's ratio of consolidated debt to consolidated EBITDA may not exceed 3.5 to 1.0 on a rolling four quarter basis.

Also, the ratio of consolidated EBITDA to consolidated interest may not be less than 2.5 to 1.0 on a rolling four quarter basis.

The total amount of priority debt must not exceed 20% of the consolidated net worth of the company at the end of any fiscal quarter.

Eagle Materials is a Dallas-based producer of building materials and construction products used in residential, industrial, commercial and infrastructure construction.

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