Lifetime Brands amendment eases maximum senior leverage ratio covenant

By Angela McDaniels

Tacoma, Wash., Sept. 26 – Lifetime Brands, Inc. amended on Tuesday the credit agreement for its $50 million term loan and $175 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The amendment modified the company’s maximum senior leverage ratios. The company is now required to maintain a senior leverage ratio not to exceed 4 times for the quarter ending Sept. 30, 4.25 times for the quarter ending Dec. 31, 3.5 times for each quarter ending during 2015 and 2.5 times for each quarter ending thereafter.

Prior to the amendment, the maximum senior leverage ratio was 3.75 times for the quarters ending Sept. 30 and Dec. 31, 3 times for each quarter ending during 2015 and 2.5 times for each quarter ending thereafter.

The amendment also changed the definition of Libor to eliminate the reference to British Bankers Association and substitute ICE Benchmark Administration as the administrator of the London interbank offered rate.

Finally, the amendment added a clause clarifying that the credit agreement and the loans thereunder will be treated as not qualifying as “grandfathered obligations” for purposes of determining withholding taxes imposed under the Foreign Account Tax Compliance Act.

JPMorgan Chase Bank, NA is administrative agent and co-collateral agent. HSBC Bank USA, NA is syndication agent and co-collateral agent.

Lifetime Brands is a Garden City, N.Y.-based designer, developer and marketer of kitchenware, tabletop and home decor products.

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