Interface amends revolver; new interest coverage ratio results in full compliance

By Sara Rosenberg

New York, Dec. 17 - Interface Inc. amended its revolver, changing the interest coverage ratio (see table 1) in order to bring the company into full compliance with the covenant.

Wachovia Bank is a letter of credit issuer, domestic agent and multicurrency agent. SunTrust Bank is a letter of credit issuer and collateral agent. Citicorp is the syndication agent.

Also under the amendment, the domestic letter of credit subcommitment was changed to $20 million from $15 million, the applicable commitment fee and interest rate was modified (see table 2) and the fixed charge coverage ratio to the immediately preceding four fiscal quarters was set to not less than 1.10 to 1.00, according to a filing with the Securities and Exchange Commission.

Interface is an Atlanta manufacturer, marketer, installer and servicer of products for the commercial and institutional interiors market.

Table 1: Interface's revised interest coverage covenant

Period Ratio

Oct. 1, 2002 through March 31, 2003 1.55 to 1.00

April 1, 2003 through June 30, 2003 1.60 to 1.00

July 1, 2003 through Sept. 30, 2003 1.80 to 1.00

Thereafter 2.00 to 1.00

Table 2: Interface's new commitment fee and interest rate

Funded debt coverage ratio Commitment fee Libor margin

Greater than or equal to 6.00 to 1.00 0.750% 3.50%

Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00 0.625% 3.00%

Greater than or equal to 4.75 to 1.00 but less than 5.50 to 1.00 0.500% 2.75%

Greater than or equal to 4.00 to 1.00 but less than 4.75 to 1.00 0.500% 2.50%

Greater than or equal to 3.25 to 1.00 but less than 4.00 to 1.00 0.500% 2.25%

Greater than or equal to 2.50 to 1.00 but less than 3.25 to 1.00 0.500% 2.00%

Less than 2.50 to 1.00 0.375% 1.75%

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