Warnaco amends loan, decreases size by $100 million

By Sara Rosenberg

New York, Aug. 6 - Warnaco Group Inc. amended its four-year revolving exit financing facility, reducing the maximum available borrowings to $175 million from $275 million. But, the company also gained permission to increase maximum available borrowings by up to $150 million, according to a 10-Q filed with the Securities and Exchange Commission on Friday.

Other terms of the Aug. 1 amendment include increasing the permitted amount of debt and liens to $10 million each, increasing permitted investments in foreign subsidiaries to $10 million, permitting investments in investment-grade securities, allowing payment of dividends, debt repurchases and common stock repurchases totaling $50 million, provided that there is $50 million cash on hand remaining, and permitting the cash portion of asset sales to be as low as 50% of the total sales price assuming the exit facility is undrawn.

As of July 3, there were no amounts outstanding under the New York apparel company's revolver.

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