American Apparel amends Crystal Financial, Lion credit facilities

By Marisa Wong

Madison, Wis., Feb. 11 - American Apparel, Inc. entered into a fifth amendment on Feb. 6 to its credit agreement dated March 13, 2012 with Crystal Financial LLC as administrative agent, according to an 8-K filed Monday with the Securities and Exchange Commission.

The amendment allows the company to borrow based on its trademarks and for these loans to remain outstanding until Jan. 1, 2014.

The company also extended the applicability of the existing minimum EBITDA covenant for the remainder of 2013 and adds a minimum excess availability covenant for the period of Dec. 16, 2013 through Feb. 1, 2014.

In addition, the amendment raises the amount of capital expenditures that the company was allowed to make in fiscal year 2012 to $18 million from $17 million.

Also on Feb. 6, the company entered into an 11th amendment to its credit agreement dated March 13, 2009 with Lion Capital (Americas) Inc. and Lion/Hollywood LLC as lenders and Wilmington Trust, NA as administrative agent.

The amendment to the Lion credit agreement conforms the minimum EBITDA covenant to the revised minimum EBITDA covenant under the amended Crystal credit agreement.

American Apparel is a Los Angeles-based manufacturer, distributor and retailer of branded fashion basic apparel.

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