Northwest Pipe amends to modify leverage ratio, EBITDA definition

By Lisa Kerner

Charlotte, N.C., Feb. 19 - Northwest Pipe Co., Prudential Investment Management, Inc. and some Prudential affiliates entered into a third amendment to their note purchase and private shelf agreement dated May 31, 2007, according to a form 8-K filed with the Securities and Exchange Commission.

For the quarter ended Dec. 31, the amendment relaxes the consolidated total debt-to-EBITDA ratio covenant to 4 to 1 from 4.65 to 1 and the consolidated senior funded debt-to-EBITDA ratio covenant to 3.5 to 1 from 4.65 to 1.

The note purchase agreement amendment also changes the method of measuring EBITDA from a trailing 12-month measurement to a year-to-date annualized measurement.

Northwest agreed to pay from time to time additional interest on each of the notes outstanding equal to an annual rate of 1.75%, the filing said.

New financial covenants relating to minimum consolidated EBITDA and maximum consolidated rental and operating lease expense are also provided for under the amendment.

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

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