Marriott amends facility's maximum consolidated debt to EBITDA ratio

By Marisa Wong

Madison, Wis., June 13 - Marriott Vacations Worldwide Corp. amended a financial covenant under its amended and restated credit agreement dated Nov. 30, 2012, according to an 8-K filing with the Securities and Exchange Commission.

Under the amended agreement, the maximum ratio of consolidated total debt to consolidated adjusted EBITDA that the company is required to maintain is 6 to 1 through the end of the first quarter of 2013, then will decrease to 5.75 to 1 through the end of the first quarter of 2014 and to 5.25 to 1 after that.

Prior to the amendment, the ratio was 6 to 1 through the end of the first quarter of 2013, then 5.25 to 1 through the end of the 2014 fiscal year and 4.75 to 1 after that.

In addition, the amendment provides for some changes to the definitions of "consolidated adjusted EBITDA" and "consolidated total debt" that will provide the company with more flexibility, the filing noted.

Also, the amendment includes modifications intended to comply with provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding the guarantee of foreign exchange and interest rate swap transactions by Marriott subsidiaries that guarantee borrowings under the credit agreement.

Marriott entered into the first amendment on June 12 with JPMorgan Chase Bank, NA as administrative agent, BofA Merrill Lynch and Deutsche Bank Securities Inc. as co-syndication agents and Bank of America, NA and Deutsche Bank Securities Inc. as co-documentation agents.

Marriott Vacations is a public timeshare company based in Orlando, Fla.

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