Lifetime amends loan leverage ratio covenant, fixed charge ratio

By Susanna Moon

Chicago, June 2 – Lifetime Brands, Inc. amended its credit agreement with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, made last Friday, modified the company’s maximum permitted senior leverage ratio to provide for access to additional liquidity for working capital and growth, the filing noted.

The company said it is now required to maintain a senior leverage ratio of no more than 4.5 times for the remaining fiscal quarters ending in 2015; 4 times for each fiscal quarter ending March 31, 2016, June 30, 2016 and Sept. 30, 2016; and 3.75 times for each fiscal quarter ending after that.

The amendment also changed the excess cash flow prepayment of the term loan to be made in 2016, to the greater of $10 million and an amount equal to 50% of the company’s excess cash flow for the 2015 fiscal year.

The company also amended the fixed charge ratio under the permitted acquisition test to 1.2 times from 1.1 times.

Lifetime most recently said it amended its agreement dated Jan. 13, 2014 with JPMorgan as administrative agent on Feb. 17 to modify the company’s maximum permitted senior leverage ratio to provide for a more gradual reduction, beginning March 31, than was previously set.

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

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