Imperial Sugar amends credit facility, loosening covenants and changing borrowing size

By Sara Rosenberg

New York, April 10 - Imperial Sugar Co. amended and restructured its credit facility, according to a filing with the Securities and Exchange Commission. Harris Trust and Savings Bank acted as administrative and collateral agent.

Under the amendments, financial covenants were eased and the revolver's borrowing base credit limit calculation was changed for the three months ending June 30, 2002.

From April 1, 2002 to June 30, 2002 the revolver is limited to $25 million and interest on undrawn funds and on borrowings under letters of credit is 150 basis points.

The company was charged an amendment fee of $500,000, which is payable in three equal installments on April 30, May 31 and June 30, the filing said.

The company has until April 22, 2002 to compile a report on how to improve profitability, the filing said. An investment bank, selected by Imperial Sugar, has until May 31, 2002 to present alternatives available to the company for repayment of debt.

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