Centex plans loan amendment to revise covenants as a result of valuation allowance

By Sara Rosenberg

New York, Jan. 31 - Centex Corp. plans to seek a credit facility amendment during its fiscal fourth quarter to modify financial covenants to address the effect of valuation allowances related to deferred tax assets, according to an 8-K filed with the Securities and Exchange Commission Thursday.

During the company's fiscal third quarter, a non-cash charge of $500 million was recorded to establish a valuation allowance related to deferred tax assets.

The company obtained a waiver on Jan. 28 regarding non-compliance with the leverage ratio and minimum tangible net worth covenants for the quarter ended Dec. 31 arising from this valuation allowance.

Centex is a Dallas-based home building 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.