Assisted Living Concepts amends loan, waiving leverage covenant breach

By Sara Rosenberg

New York, Jan. 7 - Assisted Living Concepts Inc. amended its credit facility, waiving any non-compliance with the leverage ratio through March 31, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The amendment also increased pricing by 100 basis points to base rate plus 350 bps, adjusted the unused fee to 62.5 bps and removed the option to borrow at a Libor rate.

Additionally, the company must maintain $4 million of unused availability under the revolver in order to be able to borrow funds; mortgages on certain properties were provided to the lenders; and about $17 million of mortgages or deeds of trust on properties that were scheduled to be released will no longer be released.

Furthermore, the company must by March 31 provide the lenders a fully-executed agreement that provides for the repayment of the credit facility in full, with closing taking place by Aug. 15; and by July 2, at least $15 million must be obtained from a new credit facility, sale of unencumbered assets or otherwise.

U.S. Bank is the administrative agent on the deal.

The amendment was completed on Dec. 31.

Assisted Living is a Menomonee Falls, Wis.-based operator of senior living residences.

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