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Saga Communications amends loan, changing size, pricing and covenants
By Sara Rosenberg
New York, Feb. 17 - Saga Communications Inc. amended its credit facility, reducing the revolver to $115 million from $140 million, revising pricing and changing covenants, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.
The revolver is scheduled to be permanently reduced by $2.5 million on the last day of each fiscal quarter starting on June 30, 2010 and ending on June 30, 2012.
Also, the revolver will be reduced quarterly in an aggregate amount equal to 75% of excess cash flow beginning with the fiscal quarter ending March 31.
As for pricing, it can now range from Libor plus 300 basis points to 425 bps, and the commitment fee can range from 37.5 bps to 62.5 bps, based on leverage.
Moving to covenants, the interest coverage ratio was changed to 3.00 to 1.00 for the fiscal quarter ended Dec. 31 and 3.50 to 1.00 thereafter.
The leverage ratio was revised to 5.75 to 1.00 for the period from June 30, 2009 through March 30, 5.00 to 1.00 for the period from March 31 through Sept. 29, 2010, 4.75 to 1.00 for the period from Sept. 30, 2010 through Dec. 30, 2010, 4.50 to 1.00 for the period from Dec. 31, 2010 through March 30, 2011, 4.25 to 1.00 for the period from March 31, 2011 through June 29, 2011, 4.00 to 1.00 for the period from June 30, 2011 through Sept. 29, 2011, 3.75 to 1.00 for the period from Sept. 30, 2011 through Dec. 30, 2011, 3.50 to 1.00 for the period from Dec. 31, 2011 through June 29, 2012, and 3.25 to 1.00 for the period from June 30, 2012 and thereafter.
Lastly, the fixed-charge coverage ratio was modified to 1.10 to 1.00 for the last day of any fiscal quarter ending on or after Dec. 31.
The amendment was completed on Feb. 11.
The Bank of New York Mellon is the administrative agent on the deal.
Saga is a Grosse Pointe Farms, Mich.-based broadcast company.
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