Select Comfort amends loan, waiving compliance with interest coverage ratio

By Sara Rosenberg

New York, Feb. 7 - Select Comfort Corp. amended its credit facility, waiving the requirement to comply with the minimum interest coverage ratio for the fiscal quarter ended on Dec. 29, according to an 8-K filed with the Securities and Exchange Commission Thursday.

In addition, the amendment revises the minimum interest coverage ratio from the previous ratio of 2.75 to 1.00 to a reduced ratio based on a schedule that starts at 1.75 to 1.00 for the fiscal quarter ending on March 31, and increases until it reaches 2.75 to 1.00 for the fiscal quarter ending on March 31, 2011 and each fiscal quarter ending thereafter.

Lastly, the amendment expands the definition of EBITDA.

The amendment was completed on Feb. 1.

JPMorgan is the administrative agent on the deal.

Select Comfort is a Minneapolis-based developer, manufacturer, marketer and supporter of adjustable-firmness beds and other sleep-related accessory products.

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