WCA Waste amends revolver, modifying covenants and pricing

By Sara Rosenberg

New York, Feb. 25 - WCA Waste Corp. amended its revolving credit facility, revising covenants and changing pricing, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The adjusted EBIT debt service ratio was replaced with a pro forma adjusted EBITDA debt service ratio of not less than 2.25 to 1.00.

The minimum net worth covenant was replaced with a minimum tangible net worth covenant of $30 million as of Dec. 31, plus, as of the end of each fiscal quarter thereafter, 50% of the after-tax consolidated net income of the company, plus 100% of any increase in the net worth resulting from the net cash proceeds of any future equity offerings.

The senior secured funded debt leverage ratio was changed to 2.50 to 1.00 from the previous requirement of 3.00 to 1.00.

In addition, a covenant restricting maintenance capital expenditures was added to the credit facility.

As for pricing, the interest rate on the revolver can now range from Libor plus 250 basis points to 350 bps, based on leverage.

Comerica Bank is the administrative agent on the deal.

The amendment was completed on Feb. 19.

WCA is a Houston-based provider of non-hazardous solid waste collection, transfer, processing, and disposal services.

© 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.