Wintrust lowers interest rate floor, fees on $100 million revolver

By Toni Weeks

San Luis Obispo, Calif., Nov. 7 - Wintrust Financial Corp. amended and restated its $100 million credit agreement on Thursday to, among other things, lower the interest rate floor and provide for subordinated debt, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate floor is now 3.5%, down from 4%, and the revolving credit commitment fee was lowered to 37.5 basis points from 50 bps.

The amendment also allows the company to issue up to $25 million of subordinated debt and provide for up to $10 million in guarantees. Wintrust may now pay cash dividends and/or make redemptions or repurchases of its stock as long as such transactions do not exceed 40% of the company's net income in the prior fiscal year, no default has occurred and Wintrust is in compliance, on a pro forma basis, with the financial covenants under the agreement.

The amendment also increased the requirement for maintained cash to $20 million from $15 million.

Bank of America, NA, Wells Fargo Bank, NA and Royal Bank of Canada are the lenders, each having a revolving commitment of about $33.3 million. As of the amendment date, Wintrust had no outstanding balance under the revolver, the filing noted.

The company also announced that on Thursday it repaid and terminated its $1 million term facility with BofA and repaid the remaining $10 million outstanding under its subordinated note agreement.

Wintrust is a Rosemont, Ill.-based financial holding company.

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