Dobson amends loan to clarify leverage ratio covenant

By Sara Rosenberg

New York, March 22 - Dobson Cellular Systems, a subsidiary of Dobson Communications Corp., successfully amended its credit facility to remove any ambiguity regarding the leverage ratio covenant.

With this amendment, the terms of the loan are clarified so that the leverage ratio will be calculated based on the last four quarters of operations, rather than on an annualization calculation, putting the company in full compliance at Dec. 31, 2003, and resulting in the expectation of being in full compliance with the covenant at March 31, according to a company news release.

Based on financial projections, if the leverage ratios were calculated on an annualized basis for the quarter ended March 31, then the company may not have been in compliance with the covenant, which could have resulted in "a going concern" opinion in the financial statements for the year ended Dec. 31, 2003 from independent accountants.

Dobson is an Oklahoma City provider of rural and suburban wireless communications services.

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