Allen-Vanguard amends, modifying covenants, deferring repayments, getting new tranches

By Sara Rosenberg

New York, Dec. 29 - Allen-Vanguard Corp. amended its credit facility, revising financial covenants, deferring roughly $44 million of principal repayments and providing for C$20.5 million in new debt, according to a news release.

The new debt is comprised of a C$16 million one-year operating facility priced at Base rate plus 550 basis points, with a minimum rate of 10%, and a C$4.5 million two-year letter-of-credit facility.

Under the amendment, certain lenders will be issued five-year warrants giving them the right to acquire 19.9% of the common shares of the company, and may, on April 30, be issued additional warrants or receive a share appreciation right if at least $50 million of the bank debt has not been repaid.

Allen-Vanguard is an Ottawa, Can.-based provider of proprietary services for protection and counter-measures against hazardous devices of all kinds.

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