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Dresser amends loan to get extension on submitting audited financials, change covenants
By Sara Rosenberg
New York, April 7 - Dresser Inc. amended its credit agreement to extend the deadline for providing audited financial statements for fiscal years 2002 and 2001 and to modify some covenants. The company also received a waiver of any default arising from the failure to comply with reporting requirements prior to the amendment, according to a filing with the Securities and Exchange Commission.
Morgan Stanley Senior Funding Inc. is the administrative agent, Credit Suisse First Boston is the syndication agent, Morgan Stanley & Co. Inc. is the collateral agent and Wells Fargo Bank Texas is the swing line bank.
The company has 125 days from the effective date of the amendment and waiver, which are dated March 31, to provide the financial statements. Until the financial statements are submitted, the interest rate on the facility is increased by 50 basis points, according to the filing.
Furthermore, under the amendment, the total debt/EBITDA ratio and the interest coverage ratio were modified (see table 1).
Dresser is a Dallas privately held manufacturer and marketer of highly engineered equipment and specialized services sold primarily to customers in energy-related industries.
Table 1: Dresser's new covenants
Quarter Ending Total Debt/EBITDA Ratio Interest Coverage Ratio
March 31, 2002 4.90:1.00 2.00:1.00
June 30, 2002 4.90:1.00 2.00:1.00
Sept. 30, 2002 4.90:1.00 2.00:1.00
Dec. 31, 2002 5.50:1.00 2.00:1.00
March 31, 2003 5.75:1.00 1.85:1.00
June 30, 2003 5.95:1.00 1.80:1.00
Sept. 30, 2003 5.95:1.00 1.80:1.00
Dec. 31, 2003 5.30:1.00 2.00:1.00
March 31, 2004 5.00:1.00 2.15:1.00
June 30, 2004 4.80:1.00 2.15:1.00
Sept. 30, 2004 4.50:1.00 2.30:1.00
Dec. 31, 2004 4.10:1.00 2.30:1.00
March 31, 2005 3.75:1.00 2.60:1.00
June 30, 2005 3.75:1.00 2.60:1.00
Sept. 30, 2005 3.75:1.00 2.60:1.00
Dec. 31, 2005 3.75:1.00 2.60:1.00
March 31, 2006 3.25:1.00 2.90:1.00
June 30, 2006 3.25:1.00 2.90:1.00
Sept. 30, 2006 3.25:1.00 2.90:1.00
Dec. 31, 2006 3.25:1.00 2.90:1.00
For each fiscal quarter after that 3.00:1.00 3.00:1.00
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