Centex amends loan, cutting size, raising pricing

By Sara Rosenberg

New York, Jan. 26 - Centex Corp. amended its revolving credit facility, reducing the size to $500 million from $1.35 billion and increasing pricing, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Pricing on the facility can now range from Libor plus 260 basis points to 455 bps based on ratings.

In addition, the amendment eliminated the accordion feature and reduced the letter-of-credit sublimit to $500 million from $600 million.

Also, the minimum tangible net worth covenant was changed to $650 million beginning with the fiscal quarter ending March 31 and any non-compliance with the covenant for the fiscal quarter ended Dec. 31 was waived.

Furthermore, the maximum leverage ratio was increased to 65% and, if the company's interest coverage ratio is less than 2.0 to 1.0, a liquidity reserve of cash balances must be maintained in segregated accounts with the lenders.

The amendment was completed on Jan. 23.

Bank of America is the administrative agent on the deal.

Centex is a Dallas-based constructer and seller of detached and attached single-family homes.

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