Chesapeake amends loan, changing leverage and interest coverage ratios

By Sara Rosenberg

New York, June 21 - Chesapeake Corp. amended its credit facility, revising the leverage and interest coverage ratios, according to an 8-K filed with the Securities and Exchange Commission Thursday.

The maximum leverage ratio is now set at 5.00:1 for July 1 through the end of the last fiscal quarter of 2007; 4.25:1 for the first fiscal quarter of 2008; and 4:00:1 for the second fiscal quarter of 2008 and thereafter.

The minimum interest coverage ratio is now set at 2.25:1 for July 1 through the end of the last fiscal quarter of 2007 and 2.50:1 thereafter.

The amendment was completed on June 18.

Wachovia Bank is the administrative agent on the deal.

Chesapeake is a Richmond, Va.-based manufacturer and supplier of specialty paperboard packaging products.

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