American Apparel amends facility, modifying pricing and covenants

By Sara Rosenberg

New York, June 24 - American Apparel Inc. amended its credit facility, revising pricing and replacing the total debt to consolidated EBITDA covenant with a minimum consolidated EBITDA test, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Under the amendment, pricing on the facility was increased to 17% from 15% for the period from June 21 through the date that the company delivers financial statements for the fiscal quarter ended Sept. 30, and thereafter when the ratio of total debt to consolidated EBITDA exceeds certain ratios.

The amendment was completed on June 23.

Wilmington Trust FSB is the administrative agent on the deal.

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

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