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Mood Media amends credit facility to prepay notes, ease covenant
By Marisa Wong
Morgantown, W.Va., Nov. 23 – Mood Media Corp. entered into an amendment on Wednesday to its credit agreement dated May 1, 2014 with Credit Suisse AG as administrative agent, according to a press release.
The main changes to the credit agreement include:
• Eliminating a provision that permitted proceeds from asset dispositions, not otherwise used to prepay outstanding loans, cash collateralized letters of credit or for reinvestment, to prepay the company’s 9¼% senior notes due 2020;
• Reducing the eligible amount of investment in equity interests, loans and advances made by the company or its subsidiary guarantors to its non-guarantor subsidiaries to $20 million from $40 million;
• Adding a 2 times secured leverage ratio as a maximum threshold required prior to making permitted restricted payments; and
• Keeping the covenant interest coverage ratio at 1.5 times until maturity. This covenant ratio had previously been scheduled to step up to 1.75 times at March 31, 2017.
The company’s president and chief executive officer, Steve Richards, said in the press release, “We are very pleased to have received the support of our first lien lender group for this amendment.”
“The amendment preserves the same interest coverage operating flexibility through maturity that we have had since the May 2014 inception of the first lien facilities, and permits management to continue to focus on the execution of Mood’s transformation agenda.”
The first-lien term loan and revolving credit commitments are set to mature in May 2019.
Mood is a Toronto-based designer of in-store consumer experiences.
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