Westway extends $200 million revolver to 2015, lowers interest rate

By Angela McDaniels

Tacoma, Wash., July 8 - Westway Group, Inc. amended its $200 million revolving credit facility on Wednesday, extending the maturity date to July 6, 2015, lowering pricing and adding a $50 million accordion feature.

According to an 8-K filed with the Securities and Exchange Commission on Friday, the margin over Libor was reduced to a range of 225 basis points to 300 bps from a fixed 350 bps previously. The initial interest rate is Libor plus 225 bps. The commitment fee was reduced to 50 bps from 62.5 bps.

The credit facility was also amended to:

• Increase the maximum consolidated total leverage ratio to 3.75 times. This replaced a maximum ratio that declined to 3.25 times over time;

• Provide the company a limited right to pay dividends of cash, equity or a combination to the holders of its common and preferred stock; and

• In connection with the granting of the right to pay dividends, amend the definition of consolidated interest coverage ratio to require the deduction from EBITDA of the amount paid by the company as dividends, if any, before computing the ratio.

JPMorgan Chase Bank, NA is the administrative agent.

Westway provides bulk liquid storage and makes liquid animal feed supplements. It is based in New Orleans.

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