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Luigino's enters into $80 million credit facility
New York, Oct. 3 - Luigino's, Inc. said it entered into a $80 million credit facility via a syndicate of four banks with LaSalle Bank NA as agent and U.S. Bank NA as syndication agent. The syndicate also included National City Bank of Michigan/Illinois and Northern Trust Co.
The facility matures on Jan. 4, 2006 and is made up of a $32.5 million revolver, a $42.5 million term loan and a $5 million swingline loan.
Proceeds from the new facility, which is dated Sept. 27, were used to refinance the company's previous credit agreement via Bank One, NA as agent.
Initially interest on the loan is Libor plus 200 basis points plus a 37.5 basis points commitment fee on the unused portion of the revolver.
Once the banks receive Luigino's financial statements for the quarter ending Oct. 6, 2002 the interest rate will be set by a grid.
If senior leverage is greater than 1.5:1 the interest rate is Libor plus 225 basis points and a 50 basis points commitment fee; if it is 1.5:1 or less but greater than 1.0:1 the interest rate is Libor plus 200 basis points with a 37.5 basis points commitment fee; and if it is 1:1 or less then the interest rate is Libor plus 175 basis points with a 25 basis points commitment fee.
The term loan amortizes by $2.5 million per quarter beginning Sept. 30, 2002 through Jan. 12, 2004. For March 31, 2004 through Dec. 31, 2004 the amortization is $3.125 million per quarter and for March 31, 2005 to Sept. 30, 2005 it is $3.75 million per quarter.
Covenants require a minimum debt service coverage ratio of 1.05:1 through Jan. 4, 2004 and 1.25:1 after that.
Senior leverage must not exceed 2.0:1 and total leverage must not exceed 3.25:1 through July 13, 2003 and 3.0:1 after that.
Tangible net worth must be at least $35 million through July 13, 2003, $40 million for July 14, 2003 through Jan. 4, 2004, $50 million for Jan. 5, 2005 through Jan. 2, 2005 and $60 million after that.
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