By Sara Rosenberg
New York, Dec. 13 - Spectrum Brands Inc. amended its credit facility, lowering the minimum consolidated interest coverage ratio and raising the maximum consolidated leverage ratio for Dec. 31, 2005 through June 30, 2007, and increasing the term loan interest rates (see table), according to an 8-K filed with the Securities and Exchange Commission Tuesday.
The minimum consolidated interest coverage ratio was reduced to 2.00:1.00 for the four fiscal quarters ending Dec. 31, 2005 through June 30, 2006 and 2.25:1.00 for the four fiscal quarters ending Sept. 30, 2006 through June 30, 2007. The ratio is set at 3.00:1.00 for the four fiscal quarters ending Sept. 30, 2007 through June 30, 2008 and 3.50:1.00 for the four fiscal quarters ending Sept. 30, 2008 and thereafter.
The maximum consolidated leverage ratio was raised to 6.60:1.00 for the four fiscal quarters ending Dec. 31, 2005 through June 30, 2006 and 5.50:1.00 for the four fiscal quarters ending Sept. 30, 2006 through June 30, 2007. The ratio is set at 4.75:1.00 for the four fiscal quarters ending Sept. 30, 2007 through June 30, 2008, 4.25:1.00 for the four fiscal quarters ending Sept. 30, 2008 through June 30, 2009 and 3.75:1.00 for the four fiscal quarters ending Sept. 30, 2009 and thereafter.
In addition, 101 soft call protection for one year against optional prepayments was added to the credit agreement.
Lastly, under the amendment, the sale of the company's Nu-Gro business was approved by lenders.
The amendment was completed on Monday.
Bank of America is administrative agent on the deal.
Spectrum Brands is an Atlanta-based consumer products company.
Table: Applicable Term Loan Libor Margins
Ratings | Canadian and U.S. Term Loans | Euro Term Loans | Tranche B Euro Term Loans
|
BB-/Ba3 | 2.00 | 2.50 | 2.25
|
B+/B1 | 2.25 | 2.50 | 2.25
|
B/B2 | 2.50 | 2.75 | 2.50
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.