Libbey Glass reduces revolver to $100 million, extends maturity

By Angela McDaniels

Tacoma, Wash., May 3 - Libbey Glass Inc. and Libbey Europe BV amended their revolving credit facility on Friday, extending the maturity and reducing pricing.

The amendment reduced the commitments available to $100 million from $110 million, but the borrowers have the option to increase the facility by $10 million, according to an 8-K filed with the Securities and Exchange Commission by parent company Libbey Inc.

The maturity date was extended to April 29, 2016 from April 8, 2014. The amendment provides for a springing maturity date to the extent that Libbey Glass' 10% senior secured notes due 2015 are not refinanced by Nov. 17, 2014.

The new interest rate is Libor plus 175 basis points to 200 bps, and the commitment fee was lowered to 37.5 bps from 75 bps. The initial interest rate is Libor plus 175 bps.

The amendment includes a springing fixed charge coverage ratio covenant. It requires the borrowers to maintain an EBITDA to fixed charges ratio above 1.1 times during periods when the amount of available commitments plus the loan parties' cash and permitted investments falls below a certain threshold.

JPMorgan Chase Bank, NA is the administrative agent for U.S. loans, and J.P. Morgan Europe Ltd. is the administrative agent for Dutch loans.

Libbey is a Toledo, Ohio-based glassware company.

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