American Apparel amends loan, revising debt to EBITDA requirement

By Sara Rosenberg

New York, April 1 - American Apparel Inc. amended its credit facility, increasing the total debt to consolidated EBITDA ratio at March 31 to 2.00:1.00 from 1.75:1.00 and at June 30 to 1.90:1.00 from 1.70:1.00, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

In addition, the amendment allows lender assignment of rights and obligations under the facility without consent of the company from May 15 through Nov. 15 if the ratio of total debt to consolidated EBITDA exceeds certain levels.

The amendment was completed on March 31.

Wilmington Trust FSB is the administrative agent on the deal.

American Apparel is a Los Angeles-based manufacturer, distributor and retailer of fashion basic apparel for women, men, children and pets.

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