Carillon revenue and refunding bondholders waive covenant defaults

By Caroline Salls

Pittsburgh, Jan. 23 – A majority in principal amount of Carillon, Inc. fixed-rate first-mortgage revenue and refunding bondholders agreed to waive defaults arising out of the company’s failure to meet covenants under a related loan agreement, according to a notice from trustee U.S. Bank NA.

The bonds were issued by Lubbock Health Facilities Development Corp.

U.S. Bank said the covenant defaults stem from Carillon’s failure to achieve a debt service coverage ratio of 1.20 and its failure to achieve a liquidity requirement of 150 days cash on hand for the preceding 12-month period.

According to the notice, Carillon has not posted its audited financial statements for the fiscal year ended June 30, 2014, as the auditors have not provided audited financial statements because of the covenant defaults.

Carillon is a Lubbock, Texas, nursing home operator.

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