Allied Holdings amends covenants, hires Miller Buckfire

New York, June 3 - Allied Holdings, Inc. said it amended its senior secured credit facility to ease various covenants.

The Decatur, Ga., vehicle transportation company also said it has hired Miller Buckfire to evaluate strategic and financial options. Preliminary recommendations are expected by June 22.

Under the credit facility amendment, Allied eased the minimum consolidated EBITDA covenant for the 12 months ending on the last day of April and May 2005 and amended the debt incurrence ratio for the period May 31, 2005 to June 22, 2005.

Maximum borrowings under the revolver are now limited to $21.3 million for May 30 to June 8, $17.6 million for June 9 to June 12 and $19.6 million for June 13 to June 22. Letters of credit are restricted to $43.7 million for May 30 to June 22.

In addition, the total of all loans and letters of credit is limited to four times consolidated EBITDA for the most recent 12 months during the period May 1 to June 22.

In return for the amendments, the interest rate on the credit facility increases by 300 basis points.

Following the amendment, Allied Holdings was in compliance with the covenants as of April 30. It is required to report on its compliance with the minimum EBITDA covenant as of May 31 by June 30.

Ableco Finance LLC is collateral agent and Wells Fargo Foothill, Inc. is administrative agent for the facility.

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