AMF amends loan to allow $20 million LoC facility, add call premium, adjust covenants

New York, June 14 - AMF Bowling Worldwide, Inc. said it amended its credit facility with Credit Suisse, Cayman Islands Branch as administrative agent to allow for a $20 million synthetic letter-of-credit facility, add call protection and adjust covenants.

As part of the amendment, which was effective June 8, the interest rate on the existing loans will increase if the rate on the synthetic letter-of-credit facility is higher than AMF's current term loan B, according to an 8-K filing with the Securities and Exchange Commission.

The changes add a 100 basis point prepayment premium to the term loan B if there is an optional prepayment within one year of the amendment and the lenders approve a reduction in the interest rate. No premium will be paid if the entire facility is repaid through a refinancing.

AMF's amendment also changes covenants to allow business combinations that meet specific tests and modifies financial covenants and adds a minimum liquidity test for capital expenditures and a senior leverage ratio test.

AMF is a Richmond, Va., bowling center operator and manufacturer of bowling and billiards products.

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