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KEYW amends credit agreement to boost flexibility for more investments
By Susanna Moon
Chicago, June 16 – KEYW Holding Corp. said it amended its credit agreement to boost flexibility.
The company amended the agreement dated Nov. 20, 2012 to modify definitions and pricing tiers to the interest rate margins and adjust financial covenants, according to a company press release.
The amendment increases the maximum consolidated senior leverage ratio to 4 times for the quarter ending June 30, decreases the same by 25 basis points per calendar quarter and through the quarter ending Dec. 31, 2014; after that, it reduces and sets the maximum ratio to 3 times.
The amendment also raises the maximum consolidated total leverage ratio to 4 times for the quarter ending June 30, decreases the same by 25 bps per calendar quarter and through the quarter ending Dec. 31; after that, it reduces and sets the maximum ratio to 3.5 times.
Also, the consolidated fixed charge coverage ratio was listed to 1.4 times for the period from April 1 through maturity.
The amendment also modifies the definition of consolidated EBITDA to allow for the add back of "run rate" cost savings realized as a result of cost reduction actions provided that the add-backs, taken together with others, do not account for more than 10% of consolidated EBITDA.
“The adjustments made in this amendment will allow KEYW the flexibility to continue the increased investments we've made in our commercial technology subsidiary, Hexis Cyber Solutions, and provides an ability for KEYW to meet other corporate objectives, as well,” Len Moodispaw, chairman and chief executive officer of KEYW, said in the press release.
KEYW is a Hanover, Md.-based provider of agile cyber superiority, cybersecurity and geospatial intelligence solutions primarily for U.S. Government intelligence and defense customers.
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