Angelica reduces revolver to $125 million, lowers rates

By Jennifer Chiou

New York, April 9 - Angelica Corp. entered into the second amendment to its credit facility to reduce the size of the revolving line of credit to $125 million from $150 million, according to an 8-K filed with the Securities and Exchange Commission.

In exchange, the interest rates applying to various levels of borrowing were also lowered.

In addition, the amendment changes the debt-to-EBITDA ratio requirements to a maximum of 3.5 times from 4.0 times.

Angelica said it also anticipates that unused fees also will be decreased.

According to the filing, the company has retained the accordion feature of the loan agreement, making $25 million of additional borrowing capacity available.

LaSalle Bank NA was the agent on the deal.

Angelica is a Chesterfield, Mo.-based provider of textile rental and linen management services principally to the health care industry.

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