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Journal Register amends loan, reducing revolver size, raising pricing, loosening covenants
By Sara Rosenberg
New York, Dec. 11 - Journal Register Co. amended its credit facility, reducing the revolver size to $200 million from $375 million, increasing pricing and relaxing financial covenants, according to an 8-K filed with the Securities and Exchange Commission Tuesday.
Pricing under the revolver and the term loan A is now set at Libor plus 250 basis points, with a 25 bps step-up if the total leverage ratio exceeds 6.25 to 1.00, and the revolver commitment fee was increased to 50 bps.
Covenant revisions included an increase to the maximum total leverage ratio (see table 1) and a decrease to the interest coverage ratio (see table 2).
In addition, the accordion feature under the credit facility was reduced to $250 million from $500 million.
The amendment also modifies certain restrictive covenants to limit the company's ability to make restricted payments, including paying dividends or stock repurchases, making acquisitions in excess of $50 million and disposing of assets in excess of $200 million.
The amendment was completed on Dec. 6.
Lenders were paid a 25 bps amendment fee.
JPMorgan is the administrative agent on the deal.
Journal Register is a Yardley, Penn.-based media company.
Table 1: Amended Total Leverage Ratio
Period Total Leverage Ratio
Sept. 30, 2007 June 30, 2008 6.75 to 1
From July 1, 2008 through Sept. 30, 2008 6.65 to 1
From Oct. 1, 2008 through Dec. 31, 2008 6.50 to 1
From Jan. 1, 2009 through March 31, 2009 6.30 to 1
From April 1, 2009 through June 30, 2009 6.15 to 1
From July 1, 2009 through Sept. 30, 2009 6.00 to 1
From Oct. 1, 2009 through Dec. 31, 2009 5.75 to 1
From Jan. 1, 2010 through Dec. 31, 2010 5.25 to 1
From Jan. 1, 2011 and thereafter 5.00 to 1
Table 2: Amended Interest Coverage Ratio
Period Interest Coverage Ratio
From Sept. 30, 2007 through Dec. 31, 2010 1.85 to 1
From Jan. 1, 2011 and thereafter 2.00 to 1
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