VOXX cuts revolver commitments to $125 million; covenant breach waived

By Susanna Moon

Chicago, Jan. 22 – VOXX International Corp. reduced its revolving commitments to $125 million from $200 million, according to an 8-K filing with the Securities and Exchange Commission.

The facility has a $15,625,000 sublimit for letters of credit and a $6.25 million sublimit for swingline loans.

The company said it amended its credit agreement on Jan. 15 with Wells Fargo Bank, NA as administrative agent.

The sixth amendment also adds definitions that allow for the extension of credit based on a borrowing base certificate and amended the terms to allow for the total leverage ratio for the quarter ended Nov. 30, 2015 to be less than or equal to 4.25 times and the consolidated EBIT to consolidated interest expense ratio for the quarter ended Nov. 30, 2015 to be no greater than or equal to 1.75 times, effectively waiving the breach of these covenants for the quarter ended Nov. 30, 2015, the filing noted.

The amended facility is due Jan. 9, 2019.

The consumer electronics manufacturer and distributor is based in Hauppauge, N.Y.

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