Chesapeake amends revolver, revising covenants, increasing pricing

By Sara Rosenberg

New York, March 6 - Chesapeake Corp. amended its revolving credit facility, increasing the total leverage ratio and a decreasing the interest coverage ratio for the four quarters of fiscal 2008, according to an 8-K filed with the Securities and Exchange Commission Thursday.

In addition, pricing was increased to Libor plus 450 basis points.

Also, basket limitations were imposed for acquisitions, dispositions and other indebtedness.

If the revolver is not refinanced prior to March 31, the amendment requires the company to provide a security interest in substantially all of its tangible European assets.

The amendment was completed on March 5.

Wachovia Bank is the administrative agent on the deal.

Chesapeake is a Richmond, Va.-based manufacturer and supplier of specialty paperboard packaging products.

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