Fleetwood in talks with lenders to change EBITDA covenant

By Sara Rosenberg

New York, March 6 - Fleetwood Enterprises Inc. is currently in negotiations with lenders regarding changing the EBITDA covenant in its revolving credit agreement since the company anticipates not being able to comply with the existing EBITDA covenant after the fourth quarter, according to a filing with the Securities and Exchange Commission. Bank of America is the lead bank on the loan.

At the end of the third quarter short-term borrowings under the secured credit facility were $24.7 million.

At the end of January, the company amended its revolver, reducing the total size, lowering the borrowing availability reserve requirement and releasing excess real estate and equipment collateral. Bank of America is the administrative agent on the loan.

More specifically, under the amendment, the size of the revolver was reduced to $110 million from $190 million and the borrowing availability reserve requirement was lowered to $30 million from $50 million. Furthermore, the amendment eliminated a $1.9 million fee that was scheduled to become due on January 26. And lastly, the amendment allows Fleetwood to make additional capital contributions to its HomeOne Credit finance subsidiary and to enter into a warehouse line of credit to support HomeOne operations.

Fleetwood is a Riverside, Calif. manufacturer of recreational vehicles and retailer of manufactured housing.

© 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.