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Xerium announces credit agreement amendment
03 May '07
3 min read
The amendment to the credit facility includes, among other changes, the following changes:
• Reduction of the minimum interest coverage ratio covenant for the period from the second quarter of 2007 through 2012 and of the minimum fixed charge ratio covenant for the period from the second quarter of 2007 through 2012.
• Changes to previously existing covenant limiting dividends to make it more restrictive and the insertion of a covenant limiting the quarterly dividend payable on common stock of the Company to not more than $0.1125 per share in addition to the other restrictions on dividends.
• Reduction of mandatory excess cash flow prepayment percentages in the event there is Excess Cash (as defined in the Credit Agreement) to 40% in fiscal year 2007, 27.5% in fiscal year 2008, and 50% in each fiscal year thereafter.
•Changes to the definition of Adjusted EBITDA to add back Consolidated Restructuring and Growth Program Costs (as defined in the Amendment), subject to certain limitations.
• Other changes that provide enhanced flexibility to invest in capital expenditures, joint ventures and acquisitions, subject to various restrictions.
In connection with the amendment, the Company paid an amendment fee of approximately $1.5 million, as well as other fees and expenses.
Click here to read more:
• Reduction of the minimum interest coverage ratio covenant for the period from the second quarter of 2007 through 2012 and of the minimum fixed charge ratio covenant for the period from the second quarter of 2007 through 2012.
• Changes to previously existing covenant limiting dividends to make it more restrictive and the insertion of a covenant limiting the quarterly dividend payable on common stock of the Company to not more than $0.1125 per share in addition to the other restrictions on dividends.
• Reduction of mandatory excess cash flow prepayment percentages in the event there is Excess Cash (as defined in the Credit Agreement) to 40% in fiscal year 2007, 27.5% in fiscal year 2008, and 50% in each fiscal year thereafter.
•Changes to the definition of Adjusted EBITDA to add back Consolidated Restructuring and Growth Program Costs (as defined in the Amendment), subject to certain limitations.
• Other changes that provide enhanced flexibility to invest in capital expenditures, joint ventures and acquisitions, subject to various restrictions.
In connection with the amendment, the Company paid an amendment fee of approximately $1.5 million, as well as other fees and expenses.
Click here to read more:
Xerium Technologies Inc
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