Weigh-Tronix amends credit facility after Berkel sale

New York, Nov. 27 - Weigh-Tronix LLC said it amended its bank credit facility to take account of the sale of Berkel Inc.

After selling Berkel, Weigh-Tronix used $5.1 million of the proceeds to pay down part of the amount outstanding under its credit facility.

Selling the unit and paying down part of the borrowings worsened Weigh-Tronix's leverage ratio, the company said in a filing with the Securities and Exchange Commission.

The amendment waives the leverage covenant at Sept. 30, 2001 and amends the leverage covenant for Dec. 31, 2001 and March 31, 2002.

In addition to the covenant waiver and amendment, Weigh-Tronix must deliver an updated business plan and cash flow forecast to its bank group by Jan. 11, 2002.

That information will then be used to reassess the covenants. By Feb. 7, 2002, the company and its lenders must reach agreement on appropriate future levels for these requirements.

Failure to reach agreement will be an event of default, according to the SEC filing.

Weigh-Tronix's credit facility includes its SWT Finance BV and Weigh-Tronix Canada ULC units and is with lenders Lehman Brothers Inc., FleetBoston Robertson Stephens Inc., Lehman Commercial Paper Inc. and Fleet National Bank.

End

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.