Shiloh Industries amends loan, temporarily waiving financial covenant

By Sara Rosenberg

New York, Nov. 19 - Shiloh Industries Inc. amended its credit facility, waiving compliance with financial covenants for the period from July 31 to Oct. 31 and relaxing them thereafter, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Specifically, covenant waived include the fixed-charge and leverage ratio requirements.

The leverage ratio is set at 5.80 to 1.00 from Jan. 31, 2010 through April 29, 2010; 4.75 to 1.00 from April 30, 2010 through July 30, 2010; 2.75 to 1.00 from July 31, 2010 through Jan. 30, 2011; 2.50 to 1.00 from Jan. 31, 2011 through July 30, 2011; and 2.00 to 1.00 from July 31, 2011 to maturity.

The fixed-charge coverage ratio is 1.75 to 1.00 from Jan. 31, 2010 through April 29, 2010; 2.25 to 1.00 from April 30, 2010 through July 30, 2010; 3.00 to 1.00 from July 31, 2010 through Jan. 30, 2011; 2.50 to 1.00 from Jan. 31, 2011 through April 29, 2011; and 2.75 to 1.00 from April 30, 2011 to maturity.

In addition, the amendment provides for minimum EBITDA requirements for the three months ending at each month end date from Oct. 31 to July 31, 2010.

The amended facility is comprised of an $80 million revolver maturing in July 2012 that is priced at Libor plus 500 basis points.

PNC Bank is the administrative agent on the deal.

The amendment was completed on Nov. 13.

Shiloh is a Valley City, Ohio-based manufacturer of first operation blanks, engineered welded blanks, complex stampings and modular assemblies for the automotive and heavy truck industries.

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