KEYW amends credit terms with RBC, lifts leverage ratio pricing tiers

By Susanna Moon

Chicago, Nov. 10 – KEYW Holding Corp. amended its credit agreement with Royal Bank of Canada as administrative agent last Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The amendment adjusts the minimum cash interest coverage charge ratio as of the quarter ended Sept. 30 to 1.6 times and increases the consolidated senior secured leverage ratio pricing tiers, the filing noted.

The amendment also lifts the unused revolver fee by 15 basis points.

There is a condition to credit extensions that the consolidated senior secured leverage ratio is not more than 2.25 times.

For the period through March 31, 2016, the amendment amends the credit agreement to

• Limit the amount that may be borrowed under the revolving credit facility to $20 million;

• Require maintenance of minimum cash of at least $10 million;

• Restrict acquisitions and investments and payments and distributions otherwise permitted under the credit agreement; and

• Suspend the exclusion of up to $25 million unrestricted cash for purposes of calculating the maximum consolidated total leverage ratio.

Hanover, Md.-based KEYW is a cyber-security services company.

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