Oppenheimer amends loan, modifying covenants and pricing

By Sara Rosenberg

New York, Dec. 16 - Oppenheimer Holdings Inc. amended its credit facility on Tuesday, revising covenants and increasing pricing to Libor plus 450 basis points, according to an 8-K filed with the Securities and Exchange Commission.

Under the amendment, the fixed-charge coverage ratio and total leverage ratio for the current fiscal quarter and for future fiscal quarters through June 30, 2013 was changed.

The fixed-charge coverage ratio at Dec. 31 is set at 2.05 times and it will gradually move to 4.85 times at June 30, 2013.

The leverage ratio at Dec. 31 is set at 5.45 times and it will gradually move to 1.0 times at June 30, 2013.

Also, the loan amortization payments for fiscal quarters through Dec. 31, 2010 beginning in the fiscal quarter ended March 31 were increased.

In connection with the amendment, the company is prepaying $15 million, reducing the senior secured note to $47. 8million.

Morgan Stanley is the agent on the deal.

The company has also reached agreement with CIBC to amend financial terms and covenants in its $100 million subordinated loan agreement in line with the agreement reached with the senior lenders.

Oppenheimer is a Toronto-based provider of various financial services.

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