Wintrust lifts revolver commitments, modifies financial covenants

By Marisa Wong

Madison, Wis., Nov. 1 - Wintrust Financial Corp. entered into a fifth amendment its amended and restated credit agreement dated Oct. 30, 2009, increasing total revolving commitments to $100 million from $75 million, according to an 8-K filing with the Securities and Exchange Commission.

Each of the lenders, Bank of America, NA, Wells Fargo Bank, NA and Royal Bank of Canada, now has a revolving commitment of $33.3 million.

The amendment also decreases the interest rate to a minimum of 4% from a minimum of 4.5% and increases the aggregate amount of permitted other liens securing indebtedness to $40 million from $25 million.

In addition, Wintrust revised certain terms of the financial covenants to

• Increase the requirement to maintain a return on assets to 0.35% from 0.25%;

• Increase the maintenance requirement for tangible equity capital to $1.2 million from $670 million;

• Decrease the permitted ratio of non-performing assets to primary capital to 25% from 30%;

• Decrease the ratio of bank investments to net worth to 1.15 to 1.00 from 1.25 to 1.00; and

• Increase the requirement for cash maintained at Wintrust to $15 million from $10 million.

As of Oct. 31, Wintrust has no outstanding balance under the revolving credit facility and has $1 million outstanding under its term facility with Bank of America.

Bank of America is the administrative agent for the amended and restated credit agreement. The fifth amendment was completed on Oct. 26.

Wintrust is a Lake Forest, Ill.-based financial holding company.

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