Handleman amends loan, reducing size, adding collateral

By Sara Rosenberg

New York, Nov. 2 - Handleman Co. amended its credit facility, reducing the line of credit to $225 million from $250 million and switching the facility to secured from unsecured, according to an 8-K filed with the Securities and Exchange Commission Thursday.

In addition, under the amendment, the company's obligation to meet its debt service coverage ratio and the leverage ratio has been deferred until February 26, 2007.

Security for the loan is a first-priority interest in all of the company's real and personal assets.

The amendment was completed on Oct. 27.

LaSalle Bank Midwest is the administrative agent on the deal.

Handleman is a Troy, Mich.-based category manager and distributor of prerecorded music to retailers.

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