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Accellent amends loan, changing leverage and interest coverage ratios, increasing spreads
By Sara Rosenberg
New York, April 30 - Accellent Inc. amended its credit facility, revising the leverage and the interest coverage ratios, and increasing pricing, according to an 8-K filed with the Securities and Exchange Commission Monday.
The amended leverage covenant provides for maximum ratio of 8.50 to 1.00 through the quarter ending Sept. 30, 2008, 8.00 to 1.00 for the next four quarters and declines thereafter by 1.00 times on an annual basis until Sept. 30, 2012 and 4.50 to 1.00 on Oct. 1, 2012.
The amended interest coverage covenant provides for a minimum ratio of 1.25 to 1.00 through the quarter ending Sept. 30, 2008, 1.35 to 1.00 on Oct. 1, 2008, 1.55 to 1.00 on Oct. 1, 2009, 1.75 to 1.00 on Oct. 1, 2010, 2.00 to 1.00 on Oct. 1, 2011 and 2.10 to 1.00 on Oct. 1, 2012.
If the leverage ratio exceeds 8.00 to 1.00, revolver pricing will be Libor plus 275 basis points, and if the ratio exceeds 7.00 to 1.00 but is equal to or less than 8.00 to 1.00, revolver pricing will be Libor plus 250 bps. In all other cases, pricing will be as currently provided for in the facility.
If the leverage ratio exceeds 8.00 to 1.00, term loan pricing will be Libor plus 275 bps. If the ratio exceeds 6.00 to 1.00 but is equal to or less than 8.00 to 1.00, pricing will be Libor plus 250 bps, and if the ratio is equal to or less than 6.00 to 1.00, pricing will be Libor plus 225 bps.
JPMorgan is the administrative agent on the deal.
The amendment was completed on April 27.
Accellent is a Wilmington, Mass.-based provider of outsourced design, engineering and manufacturing of custom components, subassemblies and completed devices primarily for medical device firms.
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