GenCorp amends loan, increasing leverage ratio, term loan spreads

By Sara Rosenberg

New York, Feb. 1 - GenCorp Inc. amended its senior secured credit facility, increasing the maximum leverage ratio covenant to 8.0 to 1.0 for Dec. 1 through Nov. 30, 2006 and, for the same period, increasing pricing on the term loans by 25 basis points, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

In addition, under the amendment, the term loans are subject to an additional increase in pricing of 50 bps if loan ratings are lowered to certain levels.

The amendment is effective as of Jan. 26.

Wachovia is the administrative agent on the deal.

GenCorp is a Rancho Cordova, Calif., technology-based manufacturer.

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