Welbilt amends $400 million revolver to adjust financial covenants

By Sarah Lizee

Olympia, Wash., April 20 – Welbilt, Inc. amended its $400 million senior secured revolving credit facility due October 2023 to address the risk of non-compliance with the revolver’s financial covenants due to the Covid-19 pandemic’s impact on the commercial foodservice industry and the resulting demand for the company’s products, according to a press release.

The leverage ratio and interest coverage financial covenants are suspended for four quarters beginning with the quarter ending June 30 and replaced during that period with minimum consolidated EBITDA, minimum liquidity and maximum capital expenditures tests, with the minimum liquidity test extending one additional quarter.

The leverage ratio and interest coverage tests will be reinstated in the second quarter of 2021 at modified levels as compared to the pre-amendment requirements, returning to the pre-amendment covenant levels by the fourth quarter of 2021.

Welbilt is a New Port Richey, Fla.-based commercial foodservice equipment company.

© 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.