American Greetings amends credit agreement to make restricted payments

By Marisa Wong

Madison, Wis., Jan. 28 - American Greetings Corp. amended its credit agreement dated Aug. 9, 2013 with PNC Bank, NA as revolver agent and collateral agent and Bank of America, NA as global administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

American Greetings entered into the first amendment on Jan. 24.

The amendment, among other things, permits the company to convert from a C corporation to an S corporation for tax purposes and, in connection with the conversion, to change its fiscal year to end on Dec. 31 of each year, change its inventory accounting method from last-in, first-out to first-in, first-out and make S-corp tax distributions to holders of its capital stock.

The amendment also allows the company to make interest payments on some senior notes issued by an indirect parent company in a principal amount not to exceed $300 million, as well as to make a one-time restricted payment of up to $50 million to Century Intermediate Holding Co., so that Century Intermediate Holdings can redeem some of its preferred stock.

In addition, the amendment allows the company to make additional consolidated capital expenditures each year.

American Greetings is a Cleveland-based greeting card company.

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