Keystone Consolidated amends loan, modifying covenants and pricing

By Sara Rosenberg

New York, Oct. 7 - Keystone Consolidated Industries Inc. amended its credit facility, revising financial covenant requirements and increasing pricing, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

Under the amendment, the minimum fixed-charge coverage ratio was waived for Sept. 30, Oct. 31 and Nov. 30, and modified to 0.90:1.0 for Dec. 31, Jan. 31, 2010 and Feb. 28, 2010. The ratio then moves to 1.0:1.0 for each month ending thereafter.

In addition, the amendment changes the calculation of the fixed-charge coverage ratio to include capital expenditures and increases the required minimum excess availability from Sept. 30 to March 31, 2010 by $5 million.

As for pricing, the revolver is now priced at Libor plus 275 basis points and the term loan is now priced at Libor plus 300 bps.

The amendment was completed on Oct. 2.

Wachovia is the agent on the deal.

Keystone is a Dallas-based manufacturer of steel fabricated wire products, industrial wire, billets and wire rod.

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