American Reprographics amends loan, changing pricing and covenants

By Sara Rosenberg

New York, Oct. 6 - American Reprographics Co. amended its credit facility, revising pricing, reducing the minimum interest coverage ratio (see table 1) and the fixed-charge coverage ratio (See table 2), and increasing the leverage (see table 3) and senior secured leverage (see table 4) ratios, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Pricing on the revolver can now range from Libor plus 325 basis points to 375 bps and the commitment fee can range from 30 bps to 50 bps, based on leverage.

And, pricing on the term loan B can now range from Libor plus 425 bps to 475 bps based on leverage.

As part of the amendment, the company's revolver was reduced to around $49.5 million from around $74.5 million, $35 million of the term loan was repaid and about $36 million in term loan B amortization payments that would have been due in 2011 were deferred until maturity.

In addition, the amendment added a new definition of creditable excess cash and revised the definition of fixed-charge coverage ratio to allow for an adjustment of creditable excess cash.

Also, the amendment increased the amount of foreign subsidiary debt to $15 million from $10 million.

The amendment was completed on Oct. 5.

Lenders were paid a 50 bps amendment fee. Term loan B lenders were also paid a 100 bps amortization deferral fee.

JPMorgan is the administrative agent on the deal.

American Reprographics is a Walnut Creek, Calif.-based provider of business-to-business document management services to the architectural, engineering and construction industries.

Table 1: Minimum Interest Coverage Ratio

Fiscal Quarter Ending Amended Ratio

Sept. 30, 2009 2.50:1:00

Dec. 31, 2009 2.00:1.00

March 31, 2010 through Sept. 30, 2010 1.75:1.00

Dec. 31, 2010 through Sept. 30, 2011 2.00:1.00

Dec. 31, 2011 2.50:1.00

March 31, 2012 and thereafter 3.00:1.00

Table 2: Fixed-Charge Coverage Ratio

Fiscal Quarter Ending Amended Ratio

Sept. 30, 2009 1.10:1:00

Dec. 31, 2009 and thereafter 1.00:1.00

Table 3: Maximum Leverage Ratio

Fiscal Quarter Ending Amended Ratio

Sept. 30, 2009 3.00:1:00

Dec. 31, 2009 3.25:1.00

March 31, 2010 3.50:1.00

June 30, 2010 through Sept. 30, 2010 3.85:1.00

Dec. 31, 2010 3.25:1.00

March 31, 2011 and thereafter 3.00:1.00

Table 4: Maximum Senior Secured Leverage Ratio

Fiscal Quarter Ending Amended Ratio

Sept. 30, 2009 through Dec. 31, 2009 3.00:1:00

March 31, 2010 3.25:1.00

June 30, 2010 through Sept. 30, 2010 3.65:1.00

Dec. 31, 2010 through March 31, 2011 3.00:1.00

June 30, 2011 and thereafter 2.50:1.00

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