Gerber Scientific amends loan, reducing size and modifying covenants

By Sara Rosenberg

New York, Nov. 24 - Gerber Scientific Inc. amended its credit facility, reducing the size to $75 million from $100 million and revising covenants, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Under the amendment, the ratio of total funded debt to consolidated EBITDA was changed to 3.50:1 from 3.75:1 at Oct. 31, and to 3.00:1 from 3.25:1 at Jan. 31, 2010 and April 30, 2010. At July 31, 2010 and thereafter, the ratio is 3.00:1.

The ratio of consolidated EBIT to consolidated interest expense was modified to 1.50:1 from 2.00:1 at Oct. 31, to 1.50:1 from 2.25:1 at Jan. 31, 2010, to 2.25:1 from 2.75:1 at April 30, 2010 and to 2.50:1 from 3.00:1 at July 31, 2010. At Oct. 31, 2010 and thereafter, the ratio is 3.00:1.

In addition, the amendment revised the definition of the consolidated asset coverage ratio to phase out the $20 million allowance for consolidated net fixed assets from Oct. 31 through Sept. 30, 2010.

The amendment also changed the definitions of EBIT and EBITDA.

The amendment was completed on Nov. 19.

RBS Citizens is the administrative agent on the deal.

Gerber Scientific is a South Windsor, Conn.-based developer, manufacturer and distributor of integrated automation equipment and software.

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