G-III Apparel amends loan, modifying EBITDA and fixed-charge coverage covenants

By Sara Rosenberg

New York, Aug. 1 - G-III Apparel Group, Ltd. amended its credit facility, changing the definition of EBITDA, and revising the EBITDA (see table 1) and fixed-charge coverage ratio covenants (see table 2), according to an 8-K filed with the Securities and Exchange Commission Tuesday.

CIT Group/Commercial Services is the agent on the deal.

The amendment was completed on July 26.

G-III is a New York-based apparel company.

Table 1: Amended EBITDA Requirement

Twelve month period ending EBITDA

Oct. 31, 2005 $15 million

Jan. 31, 2006 $20 million

April 30, 2006 $14.9 million

July 31, 2006 $10.8 million

Oct. 31, 2006 $18 million

Jan. 31, 2007 $21 million

Table 2: Amended Fixed-Charge Coverage Ratio

Fiscal Period Ratio

Three months ending Oct. 31, 2005 1.35 to 1.00

Six months ending Jan. 31, 2006 1.30 to 1.00

Nine months ending April 30, 2006 1.05 to 1.00

12 months ending July 31, 2006 0.85 to 1.00

12 months ending Oct. 31, 2006 1.00 to 1.00

12 months ending Jan. 31, 2007 1.00 to 1.00

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