LSB Industries amends, restates $100 million working capital revolver

By Angela McDaniels

Tacoma, Wash., Feb. 19 - LSB Industries, Inc. amended and restated its $100 million working capital revolver loan, according to an 8-K filing with the Securities and Exchange Commission.

Under the terms of the amendment, the company and all of its subsidiaries, other than Zena Energy LLC, including those that were previously guarantors of the revolver, are now borrowers under the revolver.

The amendment also provides the following:

• If the excess borrowing availability is less than or equal to 12.5% of the total $100 million commitment, then the borrowers must maintain a monthly fixed charge coverage ratio of not less than 1.1 to 1.0 on a trailing 12-month basis;

• Some assets of subsidiary El Dorado Nitrogen, LP are excluded as collateral; and

• The company may form and make certain investments in subsidiaries that are not borrowers under the revolver.

The revolver continues to provide that advances are based on specified percentages of eligible accounts receivable and inventories. It has a $15 million sublimit for letters of credit and will mature April 13, 2018.

The company entered into the amended and restated loan and security agreement Feb. 13, and the agreement is dated effective as of Dec. 31.

Wells Fargo Capital Finance, LLC is the arranger and administrative agent.

LSB is a manufacturing, marketing and engineering company based in Oklahoma City.

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