Schawk amends note agreements to increase restricted payments limit

By Lisa Kerner

Charlotte, N.C., Nov. 18 - Schawk, Inc. amended a pair of note purchase and private shelf agreements to reflect provisions similar to those provided for in a credit facility amendment that became effective Wednesday, according to a form 8-K filed with the Securities and Exchange.

Schawk entered into a third amendment of its Jan. 28, 2005 agreement related to $20 million of 4.99% series D senior notes due 2011 and $20 million of 5.17% series E senior notes due 2012.

The company entered into a fourth amendment of its Dec. 23, 2003 agreement related to $15 million of 4.9% series 2003-A senior notes, tranche A, due 2013 and $10 million of 4.98% of series 2003-A senior notes, tranche B, due 2014.

Under the amendments, the amount of restricted payments the company can make was increased from $5 million per year to an amount not to exceed $14 million during the period from Jan. 1, 2011 until July 12, 2012.

The restricted payments cannot exceed $10 million for any four consecutive quarters during that period.

Schawk amended its debt agreements to provide for greater flexibility with regard to dividends and other restricted payments, such as stock buybacks, a company news release said.

The company announced that it reinstituted the share repurchase program, suspended in June 2009, that allows for the purchase of up to 2 million shares per year.

Schawk is a Des Plaines, Ill.-based provider of brand point management services.

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