Exide to launch amendment to senior lenders Thursday

By Sara Rosenberg

New York, May 31 - Exide Technologies Inc. is scheduled to meet with secured lenders Thursday to formally embark on amendments to its $365 million senior credit facility, according to a company news release.

The company previously disclosed that it needed to amend its facility because of anticipated non-compliance with the minimum consolidated EBITDA and leverage ratio financial covenants for the fiscal year ended March 31.

The company had said that it estimates adjusted EBITDA for the fiscal year ended March 31 will be in the range of $100 million to $107 million.

Exide went on to explain that the covenant issues primarily relate to the impact of commodity costs, the loss of overhead absorption due to an inventory-reduction initiative, other fourth-quarter inventory valuation adjustments and costs associated with Sarbanes-Oxley compliance efforts.

Exide is a Lawrenceville, N.J.-based producer and recycler of lead-acid batteries.

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