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Haights Cross amends revolver, modifying financial covenants
By Angela McDaniels
Seattle, April 3 - Haights Cross Communications, Inc. amended its revolving credit facility on March 28, modifying several leverage ratio covenants and obtaining waivers, according to an 8-K report filed with the Securities and Exchange Commission on Tuesday.
The consolidated leverage ratio was changed to 5.5x, the consolidated interest coverage ratio was changed to 1.45x, the consolidated fixed-charge coverage ratio was changed to 0.75x, and the consolidated senior secured leverage ratio was changed to 2.2x.
The new ratios are retroactive to Jan. 1 and apply to the remaining life of the loan.
Previously, the consolidated leverage ratio was 5.25x and was to decline to 4.85x by October 2007, the consolidated interest coverage ratio was 1.75x and was to increase to 2x by October 2007, the consolidated fixed-charge coverage ratio was 0.8x and was to increase to 1x by October 2007 and the consolidated senior secured leverage ratio was 2.2x and was to decline to 2x by October 2007.
In addition, the amendment waives any default that may exist due to the fact that the company's financial statements for 2003, 2004, 2005 and the first, second and third quarters of 2006 may not have been prepared in accordance with GAAP due to the way Haights Cross accounted for deferred income tax expense and the fact that the financial statements for 2005 may not have been prepared in accordance with GAAP because the company did not classify its series A warrants issued as liabilities or value such warrants at "fair value."
The Bank of New York is the administrative agent on the deal.
Haights Cross is a White Plains, N.Y.-based publisher of books for the education and library markets.
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