Johnson Outdoors amends loan, modifying pricing and covenants

By Sara Rosenberg

New York, Oct. 16 - Johnson Outdoors Inc. amended its credit facility, revising pricing to Libor plus 325 basis points and modifying covenants, according to an 8-K filed with the Securities and Exchange Commission Thursday.

Under the amendment, the maximum leverage ratio cannot exceed 5.0 to 1.0 and the minimum fixed-charge coverage ratio cannot be less than 1.75 to 1.0 for the quarter ending on Oct. 3.

The amendment also modified the definition of consolidated EBITDA to exclude certain non-cash items, changed the restriction on the company's ability to increase the amount or frequency of dividends and limited its ability to effect acquisitions without the consent of lenders to acquisitions involving aggregate consideration of no more than $2 million.

JPMorgan is the administrative agent on the deal.

The amendment was completed on Oct. 13.

Johnson Outdoors is a Racine, Wis.-based designer, manufacturer and marketer of outdoor recreation products.

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