By Sara Rosenberg
New York, Sept. 21 - MediaNews Group Inc. amended its senior credit facility, changing the total leverage (see table 1), senior debt to operating cash flow (see table 2) and fixed-charge coverage (see table 3) covenants, and modifying pricing, according to an 8-K filed with the Securities and Exchange Commission Friday.
Pricing on the term loan B is now set at Libor plus 175 basis points and pricing on the term loan C is now set at Libor plus 225 bps.
In addition, pricing on the revolver and the term loan A can now range from Libor plus 125 bps to 175 bps depending on leverage. If leverage is less than 3.5 times, pricing is Libor plus 125 bps. If leverage is less than 4.5 to 1.0 but equal to or greater than 3.5 to 1.0, then pricing is Libor plus 137.5 bps. If leverage is less than 5.5 to 1.0 but equal to or greater than 4.5 to 1.0, then pricing is Libor plus 150 bps, and if leverage is equal to or greater than 5.5 to 1.0, then pricing is Libor plus 175 bps.
In connection with the amendment, the company voluntarily reduced the size of its revolver by $115 million to $235 million, effective Oct. 1.
Prior to the amendment, the revolver was scheduled to be reduced by $100 to $250 million on Dec. 30, 2008. However, the amendment eliminated this reduction.
The amendment was completed on Sept. 17.
Bank of America is the administrative agent on the deal.
MediaNews is a Denver-based provider of local news, information and services in strategically located markets.
Table 1: Consolidated Total Leverage Ratio
Calendar Year | March 31 | June 30 | Sept. 30 | Dec. 31
|
2007 | N/A | 6.75 to 1.0 | 6.75 to 1.0 | 6.75 to 1.0
|
2008 | 6.75 to 1.0 | 6.50 to 1.0 | 6.25 to 1.0 | 6.25 to 1.0
|
2009 | 6.00 to 1.0 | 6.00 to 1.0 | 5.75 to 1.0 | 5.75 to 1.0
|
2010 | 5.75 to 1.0 | 5.75 to 1.0 | 5.50 to 1.0 | 5.50 to 1.0
|
2011 | 5.50 to 1.0 | 5.50 to 1.0 | 5.00 to 1.0 | 5.00 to 1.0
|
thereafter | 5.00 to 1.0 | 5.00 to 1.0 | 5.00 to 1.0 | 5.00 to 1.0
|
|
Table 2: Ratio of Consolidated Senior Debt to Consolidated Operating Cash Flow
|
Calendar Year | March 31 | June 30 | Sept. 30 | Dec. 31
|
2007 | N/A | 4.25 to 1.0 | 4.25 to 1.0 | 4.25 to 1.0
|
2008 | 4.25 to 1.0 | 4.25 to 1.0 | 4.00 to 1.0 | 4.00 to 1.0
|
2009 | 3.50 to 1.0 | 3.50 to 1.0 | 3.25 to 1.0 | 3.25 to 1.0
|
2010 | 3.25 to 1.0 | 3.25 to 1.0 | 3.25 to 1.0 | 3.25 to 1.0
|
thereafter | 3.00 to 1.0 | 3.00 to 1.0 | 3.00 to 1.0 | 3.00 to 1.0
|
|
Table 3: Fixed-Charge Coverage Ratio
|
Calendar Year | March 31 | June 30 | Sept. 30 | Dec. 31
|
2007 | N/A | 1.25 to 1.0 | 1.15 to 1.0 | 1.15 to 1.0
|
thereafter | 1.25 to 1.0 | 1.25 to 1.0 | 1.25 to 1.0 | 1.25 to 1.0
|
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