Oshkosh to seek loan amendment to avoid covenant non-compliance

By Sara Rosenberg

New York, Jan. 29 - Oshkosh Corp. is in talks with the lead banks on its credit facility regarding an amendment that would provide financial covenant relief, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

The amendment is expected to result in higher pricing and the payment of upfront fees.

Completion of the amendment is expected to occur in late February or March.

The company is seeking the amendment because it expects to be unable to comply with financial covenants at the end of the second quarter of fiscal 2009 as a result of weaker than expected order rates during the first fiscal quarter and the current view that significant economic weakness will continue.

Oshkosh is an Oshkosh, Wis.-based designer, manufacturer and marketer of a broad range of specialty access equipment, military, commercial and fire & emergency vehicles and vehicle bodies.

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