Keane amends, allowing loan borrowings to be used for convertibles repayments

By Sara Rosenberg

New York, April 18 - Keane Inc. amended its credit facility, allowing for the drawdown of loan funds to pay the principal, accrued ordinary, non-penalty interest and default interest on its 2% convertible subordinated debentures due 2013, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The convertibles repayment date can be accelerated due to the company's failure to file on time its 10-K for the year ended Dec. 31 or its 10-Q for the first or second fiscal quarters of 2007.

In addition, the amendment extends the delivery date for audited financial statements for the year ended Dec. 31 until Sept. 30.

Furthermore, the amendment revised certain financial covenants and adds a covenant requiring Keane to maintain a net liquidity of at least $125 million for the period March 31 through Sept. 29.

The amendment was completed on April 12.

Bank of America is the administrative agent on the deal.

Keane is a Boston-based business and information technology services firm.

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