LSB Industries amends its $100 million working capital revolver

By Wendy Van Sickle

Columbus, Ohio, June 17 – LSB Industries, Inc. and its subsidiaries amended their $100 million working capital revolver, according to an 8-K filing with the Securities and Exchange Commission.

Under the terms of the amendment, arranger and administrative agent Wells Fargo Capital Finance, LLC will release its second-priority security interests and liens in collateral that also secures, on a first-priority basis, the company’s 7¾% senior secured notes, dated Aug. 7, 2013.

The amendment also provides the following:

• Modifies the definition of permitted investments to (a) allow the company to make investments to a consolidated leverage ratio not exceeding 2.5 to 1.0; (b) permit investments up to 50% of the consolidated net earnings of the company and its subsidiaries since Aug. 7, 2013, less consolidated net losses and other investments during that period; (c) permit $35 million in investments for joint ventures; (d) permit $50 million in investments in Zena Energy, LLC.; and (e) remove from the definition investments in unrestricted subsidiaries not to exceed 50% of the consolidated net earnings of the company and its subsidiaries;

• Allows the company to incur debt under the revolver if the fixed charge coverage ratio is greater than 2 to 1; and

• Allows the company to make permitted investments or incur debt under the above amendments only if the company is not in default and has at least 20% of the maximum revolver commitment or $20 million, whichever is greater, available.

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 amendment took effect June 11.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.