KEYW downsizes revolver by $20 million, extends accommodation period

By Wendy Van Sickle

Columbus, Ohio, March 2 – KEYW Holding Corp. reduced its revolving credit facility commitments by $20 million and made some other changes to its credit agreement with Royal Bank of Canada as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The Feb. 25 amendment to the agreement, which is originally dated July 21, 2014, extends the accommodation period for certain financial covenants to the date on which the company delivers its financial statements for the fiscal quarter ending June 30. The accommodation period was previously set to end March 31.

Also under the amendment, during the accommodation period, the applicable rate for Eurodollar rate loans is increased to 450 basis points.

After the accommodation period, the amendment reduces the unused commitment fee to 50 bps.

Additionally, for the fiscal quarter ended Dec. 31, 2015, the amendment allows January 2016 cost savings of up to $2 million to be included in the calculation of consolidated EBITDA.

The minimum cash interest coverage charge ratio was reduced to 2.25 times for the quarter ended Dec. 31, 2015 and to 3.25 times for the quarter ending March 31.

Hanover, Md.-based KEYW is a cybersecurity services company.

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