All American Semiconductor amends loan to up size, push out maturity, lower rates

By Sara Rosenberg

New York, Aug. 10 - All American Semiconductor Inc. amended its revolving credit facility, increasing the size to $100 million from $85 million, extending the maturity to May 31, 2009 from May 14, 2006 and improving interest rates based on the debt service coverage ratio, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

Pricing on the facility can now range from Libor plus 175 basis points to Libor plus 275 bps.

Furthermore, the unused commitment fee was reduced to 15 bps.

In addition, under the amendment, the debt service coverage ratio was reduced to 1.10:1.0 from 1.20:1.0 beginning with the quarterly period ending Sept. 30.

Harris Trust and Savings Bank is the administrative agent on the deal.

The amendment was completed on Monday.

"We are very pleased with this vote of confidence from our bank group. The increased facility and the significantly improved terms provide All American with greater flexibility to address our working capital needs as we pursue our initiatives for continued growth and improved profitability," said Howard L. Flanders, executive vice president and chief financial officer, in a company news release.

All American is a Miami-based distributor of electronic components and semiconductors.

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