Actuant amends to modify covenants, pricing and EBITDA definition

By Sara Rosenberg

New York, June 10 - Actuant Corp. amended its credit facility, revising the leverage and fixed-charge coverage ratios, raising pricing and changing the definition of EBITDA to allow the add-back of up to $30 million in actual restructuring costs for any 12-month period, according to a news release.

The maximum leverage ratio was increased from its current 3.5:1 limit to 4.0:1 through Aug. 31 and to 4.5:1 for Nov. 30 and Feb. 28, 2010, stepping down quarterly back to 3.5:1 by Nov. 30, 2010.

And, the minimum fixed-charge coverage ratio decreased to 1.65:1 from 1.75:1.

Pricing on the facility was raised by 125 basis points to Libor plus 375 bps through Nov. 30, with subsequent increases or decreases based on the company's actual leverage ratio.

Also, the unused fee on the revolver was changed to 50 bps from 40 bps.

In addition, the amendment increased quarterly principal repayments on the $113 million term loan to $10 million from $1.5 million, and the collateral for the credit facility was enhanced to include certain domestic assets.

Actuant is a Butler, Wis.-based diversified industrial company.

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