Ciber amendment lowers revolver to $44 million, waives default events

By Wendy Van Sickle

Columbus, Ohio, Nov. 2 – Ciber Inc. entered an amendment on Oct. 27 to waive events of default, reduce revolving capacity to $44 million from $54 million and make some other changes under its May 7, 2012 credit agreement with Wells Fargo Bank, NA as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

The amendment was in connection with a European refinancing under which the company’s European subsidiary parties to the credit agreement will sell certain receivables to Faunus Group International, Inc.

In addition to waiving existing events of default and reducing revolving capacity, Ciber also adjusted its fixed charge coverage ratio to 1.05 times from January 2017 through April 2017, changed the applicable margin and eliminated Libor rate loans.

The amendment also permits the release of assets sold in the European refinancing, eliminates the company’s borrowing capacity in the United Kingdom and Germany, changes the U.S. borrowing base and provides for an availability block, among other things.

New conditions imposed include:

• A cash forecast requirement, including minimum weekly receipts and maximum weekly disbursements;

• A requirement that Ciber retain a strategic adviser to prepare a confidential information memorandum and enter into a letter of intent no later than Nov. 1 regarding a potential financing, refinancing [other than the European refinancing], or any merger, acquisition, joint venture, divestiture, or other disposition of some or all of the assets of the company outside of the ordinary course of the company’s business with aggregate proceeds of at least $25 million, to be completed by Dec. 31;

• A requirement that Ciber retain at all times a financial adviser;

• The establishment of certain specified reserves; and

• The establishment of certain additional fees.

Ciber is a Greenwood Village, Colo.-based system integration and information technology services consulting company.

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