Fleetwood Enterprises amends revolver, changing EBITDA covenant

By Sara Rosenberg

New York, March 26 - Fleetwood Enterprises Inc. and its lenders have agreed to amend the EBITDA covenant under the company's revolver. Furthermore, the revolver was increased by $20 million to $130 million due to the return of a former syndicate member to the bank group. Bank of America is the administrative agent on the loan.

"Earlier this year we had resized the credit line, but in light of a subsequent increase in our borrowing base and the interest of a former participant in returning to the syndicate, we welcomed this opportunity to increase the line by $20 million," said Boyd R. Plowman, executive vice president and chief financial officer, in a news release. "This increase will provide additional liquidity as we move into the strongest selling season in both our industries."

In conjunction with amending the revolver, the company amended its inventory financing agreement with Textron Financial, which incorporated the same covenant.

Previously, the company had announced that it anticipated not being able to meet the EBITDA covenant following the fourth fiscal quarter ending April 27. With the revised covenant, which is in effect through July 2004, the company now expects to remain in compliance.

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

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