Hines amends loan, waiving compliance, reducing revolver size, increasing rates

By Sara Rosenberg

New York, Aug. 10 - Hines Horticulture, Inc. amended its credit facility, waiving compliance with certain covenants, reducing the revolver size to $100 million from $120 million and increasing interest rates by 25 basis points, according to a company news release.

Covenant compliance that was waived included the minimum fixed-charge coverage ratio for the periods ended June 30 and Sept. 30. The company had not been able to comply with this covenant at June 30 due primarily to the decline in sales during the second quarter.

In addition, the amendment establishes new fixed-charge covenant ratios beginning in the fourth quarter.

Lastly, the company is required to generate a pre-determined minimum amount of aggregate proceeds from the sale of certain assets by Dec. 31.

The amendment was completed on Aug. 8.

Hines Horticulture is an Irvine, Calif.-based operator of commercial nurseries.

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