WireCo launches amendment to revise credit facility leverage ratio

By Sara Rosenberg

New York, June 24 - WireCo WorldGroup Inc. launched with its call on Monday an amendment to its credit facility that will replace the existing total net leverage covenant with a senior secured net leverage covenant, according to an 8-K filed with the Securities and Exchange Commission.

The new senior secured net leverage ratio would open at 3.5 times and would have step-downs thereafter until it hits 3 times in the second quarter of 2016.

Also, the amendment would allow as an addback to EBITDA any losses associated with sales of some inventory, subject to the requirement that proceeds from the sales be swept quarterly to pay down the term loan.

Lenders are being offered a 25 basis point amendment fee.

Consents are due at 4 p.m. ET on Friday.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are the lead banks on the deal.

WireCo is a Kansas City, Mo.-based manufacturer of wire rope, synthetic rope, electromechanical cable and highly engineered cable structures.

© 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.