A.H. Belo amends revolver to extend maturity to April 30, 2011

By Jennifer Chiou

New York, Jan. 30 - A.H. Belo Corp. announced the approval of an amendment to its $50 million revolving credit facility to prolong the maturity through April 30, 2011.

The amendment also sets pricing at Libor plus 375 basis points.

The amended facility, which is subject to a borrowing base, provides the necessary working capital flexibility required to navigate through the current economic environment, the company said in a news release.

The amendment also creates an asset-based revolving credit facility secured by all personal property assets of the company and its active subsidiaries and certain specified real property.

In addition, the amendment establishes minimum quarterly adjusted EBITDA covenant requirements in 2009 and a fixed-charge coverage ratio covenant in 2010 of 1.0 to 1.0 while allowing capital expenditures and investments of up to $16 million per year.

The changes also allow A.H. Belo to pay dividends when the company's fixed-charge coverage ratio exceeds 1.2 to 1.0 and the aggregate availability under the credit facility exceeds $15 million.

A.H. Belo is a Dallas-based newspaper publisher.

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