Franklin Covey modifies fixed-charge coverage covenant of loan terms

By Susanna Moon

Chicago, March 3 – Franklin Covey Co. modified its fixed-charge coverage covenant under its credit agreement on Feb. 28 with JPMorgan Chase Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The company amended its credit terms to adjust the definition of the fixed-charge coverage ratio to include 85% of the change in the company’s deferred revenue during the measurement period in calculated EBITDAR.

The sixth modification agreement preserves existing debt covenants that include a funded debt-to-EBITDAR ratio of less than 3 times; a fixed-charge coverage ratio greater than 1.15 to 1.0; an annual limit on capital expenditures of $8 million; and outstanding borrowings on the revolving line of credit of no more than 150% of consolidated accounts receivable.

The other key terms remain unchanged.

Franklin Covey is a Salt Lake City consulting and training company.

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