Measurement Specialties amends loan, changing size, pricing, covenants

By Sara Rosenberg

New York, April 29 - Measurement Specialties Inc. amended its credit facility, reducing the revolver size to $90 million from $121 million, increasing pricing and revising covenants, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

As of April 1, pricing on the revolver and term loan was increased to Libor plus 400 basis points. Pricing on the two tranches can range from Libor plus 350 bps to 450 bps based on leverage.

Covenants that the company gained more flexibility under as a result of the amendment include minimum EBITDA, total leverage ratio, fixed-charge ratio and maximum capital expenditures.

Minimum EBITDA is $29 million at March 31, $21.4 million at June 30, $16.6 million at Sept. 30, $19.1 million at Dec. 31, $24.75 million at March 31, 2010 and $30 million thereafter.

The leverage ratio was revised to 3.25:1.00 at March 31, 4.00:1.00 at June 30, 5.00:1.00 at Sept. 30, 4.25:1.00 at Dec. 31, and 3.25:1.00 thereafter.

And, the fixed-charge coverage ratio was changed to 1.20:1.00 at March 31, 1.10:1.00 at June 30, 1.00:1.00 at Sept. 30, 1.15:1.00 at Dec. 31 and 1.20:1.00 thereafter.

In addition, the amendment prohibits the company from completing any business acquisitions during the covenant relief period, which ends March 31, 2010.

The amendment was completed on April 27.

General Electric Capital Corp. is the agent on the deal.

Measurement Specialties is a Hampton, Va.-based designer, developer and manufacturer of sensors and sensor-based systems to original equipment manufacturers and end users.

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