WCI Communities amends loans to reduce commitment, increase pricing

By Caroline Salls

Pittsburgh, Jan. 16 - WCI Communities, Inc.'s senior lenders have agreed to amendments to the company's senior secured revolving credit agreement and term loan agreement that will give the company greater operating and financial flexibility to continue to manage its business during an industry downturn, according to a company news release.

Specifically under the amended loan agreements, the total commitment available under the revolver and the outstanding amount of the term loan was reduced and a portion of the revolver was converted to non-revolving status.

WCI said it also agreed to increase the pricing on the loans.

In addition, some of the covenants contained in the loan agreement have been modified, suspended or waived.

The amendments run through June 30, 2009, the release said.

"The company remains focused on generating cash flow to reduce debt and strengthen its balance sheet," president and chief executive officer Jerry Starkey said in the release.

"We continue to aggressively reduce overhead and search for avenues to lower our cost of doing business."

WCI is a Bonita Springs, Fla., builder of master-planned lifestyle communities.

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