Fleming amends loan, changing covenants, increasing interest rate, reducing revolver

By Sara Rosenberg

New York, Jan. 23 - Fleming Cos. Inc. amended its credit facility, changing the debt/EBITDA covenant for the first quarter of 2003, increasing the interest rate on the term loan B by 50 basis points from the time of the amendment through the quarter ending closest to March 31 and reducing the revolver to $475 million, according to a filing with the Securities and Exchange Commission.

The company sought this amendment due to fourth quarter EBITDAL results, and the anticipated amount and timing of the proceeds from the retail store divestiture.

"The company plans to continue coordinating with the lenders in its credit facility for an updated covenant package and structure that better reflects Fleming's substantial current asset base," a news release said.

Deutsche Bank Trust Company Americas is the administrative agent, JPMorgan Chase Bank and Citicorp North America Inc. are the syndication agents, Lehman Commercial Paper Inc. and Wachovia Bank are documentation agents, Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc. are joint book managers and Deutsche Bank Securities Inc., J.P. Morgan Securities Inc. and Salomon Smith Barney Inc. are joint lead arrangers.

Fleming is a Lewisville, Tex. distributor of consumable goods and operator of price impact supermarkets.

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