Global Power Equipment amends loan to allow for acquisition, change financial covenants

By Sara Rosenberg

New York, Nov. 30 - Global Power Equipment Inc. amended its credit facility to allow for the acquisition of Williams Industrial Services Group, to add a maximum consolidated senior leverage ratio covenant and to modify various other financial covenants, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

The maximum consolidated senior leverage ratio is set at 2.00-to-1.00 through Sept. 30, 2005, 1.75-to-1.00 from Oct. 1, 2005 through Dec. 31, 2005 and 1.50-to-1.00 from Jan. 1, 2006 and thereafter.

The maximum consolidated leverage ratio was changed to 3.50-to-1.00 through Dec. 31, 2005, 3.25-to-1.00 from Jan. 1, 2006 through June 30, 2006, 3.00-to-1.00 from July 1, 2006 through Dec. 31, 2006 and 2.75-to-1.00 from Jan. 1, 2007 and thereafter, the filing said.

The minimum consolidated fixed charge coverage ratio was changed to less than 1.00-to-1.00 through March 31, 2005 and 1.35-to-1.00 thereafter.

Lastly, the minimum consolidated asset coverage ratio was changed to 1.00-to-1.00 from Dec. 31, 2005 through March 31, 2007 and 1.25-to-1.00 from June 30, 2007 and thereafter.

Bank of America is administrative agent, US Bank is syndication agent, and Bank of Oklahoma is a managing agent.

The amendment became effective on Nov. 23.

Global Power is a Tulsa, Okla.-based company that designs, engineers and manufactures a portfolio of equipment primarily for gas turbine power plants and power-related equipment for industrial operations.

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