Martin Marietta amends, extends $100 million facility via Wells Fargo

By Susanna Moon

Chicago, April 18 - Martin Marietta Materials, Inc. amended and extended its $100 million secured accounts receivable credit facility last Friday with Wells Fargo Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The facility was extended by another year through April 20, 2013, and the leverage ratio covenant was increased to conform to the amended credit agreement with JPMorgan Chase Bank, NA as administrative agent and Wells Fargo Bank, NA, Branch Banking and Trust Co., SunTrust Bank and Bank of America, NA as co-syndication agents.

Interest on the loans will be one-month Libor plus 75 basis points.

As amended, the covenant now requires Martin Marietta to keep a ratio of consolidated debt to consolidated EBITDA of no more than 3.95 times as of March 31 or June 30, 3.75 times as of Sept. 30 and 3.5 times as of the end of any fiscal quarter ending on and after Dec. 31, 2012.

However, if consolidated debt has increased in connection with an acquisition - and as a consequence of the acquisition, the company's debt rating has not been suspended, withdrawn or fallen below BBB by Standard & Poor's or Baa2 by Moody's Investors Service, Inc. - and the administrative agent has received notice within 10 days of closing, then, for a period of 210 consecutive days following completion of the acquisition, the additional consolidated debt will be excluded from consolidated debt for purposes of calculating the leverage ratio. This will apply only if the leverage ratio calculated without the exclusion at no time during the 210-day period exceeds the otherwise applicable maximum ratio modified to increase the numerator by 0.25.

Martin Marietta is a Raleigh, N.C.-based producer of aggregates for the construction industry.

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