Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers A > Headlines for American Apparel, Inc. > News item |
American Apparel amends loans, pushing out maturities, raising revolver pricing
By Sara Rosenberg
New York, Dec. 19 - American Apparel Inc. amended its revolving credit facility and second-lien loan on Friday to extend the maturities for three months and increase revolver pricing to Libor plus 450 basis points, according to an 8-K filed with the Securities and Exchange Commission.
The amendment also limits the company's capital expenditures to $9.262 million in the first quarter of 2009 and to about $8.5 million over the remainder of 2009.
In addition, the amendment increased the amount of unsecured debt permitted to be incurred by the company under the revolver and second-lien.
The revolver amendment permits certain sale-leaseback transactions.
And, the second-lien amendment permits the company to raise additional equity and to enter into up to $15 million of sale-leaseback transactions, requires the company to raise an additional $16 million of financing by March 13, 2009 and amends certain financial covenants.
Bank of America is the administrative agent on the revolver and SOF Investments LP is the lender under the second-lien.
American Apparel is a Los Angeles-based manufacturer, distributor, and retailer of branded fashion basic apparel.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.