Northwest Pipe amends note purchase agreement with Prudential

By Lisa Kerner

Charlotte, N.C., Oct. 5 - Northwest Pipe Co. amended its note purchase and private shelf agreement with Prudential Investment Management, Inc. and affiliates for the seventh time, according to an 8-K filing with the Securities and Exchange Commission Tuesday.

The amendments waive compliance with the financial covenants under the agreement for the company's fiscal quarter ended June 30 and increase the interest rates charged on outstanding balances by 175 basis points or 200 bps, depending on leverage, the filing said.

Also, the changes extend the date when Northwest Pipe must deliver audited financial statements for the year ended Dec. 31, 2009 and for the quarters ended March 31 and June 30 to Prudential and require Northwest Pipe to supply Prudential with certain cash flow forecasts as well as a revised financial projection model and business plan.

The agreement also amends the definition of consolidated EBITDA, adding a definition of consolidated total leverage ratio.

Northwest Pipe is a Vancouver, Wash.-based manufacturer of welded steel pipe.

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