Deltic Timber amends covenants under series A notes, adds guarantor

By Marisa Wong

Madison, Wis., Dec. 4 – Deltic Timber Corp. entered into an agreement on Dec. 1 with American AgCredit, PCA to amend and restate some financial covenants related to its $40 million series A senior notes under an amended and restated note purchase agreement dated March 30, 2007, according to an 8-K filing with the Securities and Exchange Commission.

With the amendment, the leverage ratio was raised to 0.65 to 1.00 from 0.60 to 1.00; the fixed-charge coverage ratio and consolidated net worth covenant were eliminated; and the minimum timber market value was reduced from 200% of outstanding total senior debt to 175% of outstanding total senior debt.

Additionally, the company’s wholly owned subsidiary, DEL-TIN Fiber LLC, has been added as a subsidiary guarantor under the note purchase agreement.

The natural resources company is based in El Dorado, Ark.

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