Kaiser Aluminum asks lenders for extension on DIP, obtains waiver on financial covenant

By Carlise Newman

Chicago, May 15 - Kaiser Aluminum Corp. is working with lenders to extend and expand its $300 million DIP facility.

The company has already obtained a modification and extension to September of the March 2003 limited waiver of financial covenants. The waiver now applies to the four quarters ending June 30, 2003; previously it would have terminated with the four quarters ending March 31, 2003.

Kaiser is working with its lenders to complete an amendment that would incorporate the May 2003 limited waiver and also modify the financial covenant for periods after June 30.

As part of this amendment, the company plans to request that the lenders extend its DIP facility past its current February 2004 expiration and increase the amount of credit available under the DIP Facility.

Kaiser said in a Securities and Exchange Commission filing that it believes the amendment will be agreed with the DIP Facility lenders not later than June 2003, based on discussions with lenders and the fact that there are currently no outstanding borrowings and only a limited amount of letters of credit outstanding under the facility.

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