Spartech amends loan, waiving compliance with some financial covenants

By Sara Rosenberg

New York, Aug. 6 - Spartech Corp. amended its credit facility, waiving until Sept. 15 non-compliance with certain financial covenants for the fiscal quarter ending Aug. 2, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The amendment also increased pricing on the facility during the wavier period to Libor plus 350 basis points.

In addition, the facility size was reduced to $175 million, with only $150 million of that available during the waiver period.

Lenders were paid a 15 bps amendment fee.

The amendment was completed on Aug. 1.

Bank of America is the administrative agent on the deal.

Spartech said in the filing that it is currently in negotiations with the lenders to further amend the credit facility and expects this process to be completed within the waiver period.

The company is looking to structure its longer term financing arrangements to allow for the necessary flexibility to implement improvement initiatives that will contribute to near-term performance and support future profitable growth.

Spartech is a Clayton, Mo.-based intermediary processor of engineered thermoplastics.

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