MagnaChip amends loan, modifying financial covenants

By Sara Rosenberg

New York, Oct. 1 - MagnaChip Semiconductor LLC amended its credit facility, revising the maximum total leverage ratio (see table 1), the minimum interest coverage ratio (see table 1) and the minimum consolidated EBITDA covenant (see table 3), according to an 8-K filed with the Securities and Exchange Commission Monday.

In addition, the amendment changed certain monthly reporting requirements.

The amendment was completed on Sept. 28.

UBS is the administrative agent on the deal.

MagnaChip is a South Korea-based designer, developer and manufacturer of mixed-signal and digital multimedia semiconductors.

Table 1: Maximum Total Leverage Ratio

Test Period Leverage Ratio

Closing Date-Dec. 31, 2005 5.100 to 1.0

Jan. 1, 2006-March 31, 2006 4.700 to 1.0

April 1, 2006-June 30, 2006 4.850 to 1.0

July 1, 2006-Sept. 30, 2006 6.850 to 1.0

Oct. 1, 2006-Dec. 31, 2006 15.000 to 1.0

Jan. 1, 2007-March 31, 2007 30.000 to 1.0

April 1, 2007-June 30, 2007 25.000 to 1.0

July 1, 2007-Sept. 30, 2007 20.000 to 1.0

Oct. 1, 2007-Dec. 31, 2007 15.000 to 1.0

Jan. 1, 2008-March 31, 2008 14.000 to 1.0

April 1, 2008-June 30, 2008 14.000 to 1.0

July 1, 2008-Sept. 30, 2008 14.000 to 1.0

Oct. 1, 2008-Dec. 31, 2008 13.500 to 1.0

Jan. 1, 2009 and thereafter 2.625 to 1.0

Table 2: Minimum Interest Coverage Ratio

Test Period Interest Coverage Ratio

Closing Date-Dec. 31, 2005 2.500 to 1.0

Jan. 1, 2006-March 31, 2006 3.000 to 1.0

April 1, 2006-Sept. 30, 2006 2.000 to 1.0

Oct. 1, 2006-Dec. 31, 2006 0.400 to 1.0

Jan. 1, 2007-March 31, 2007 0.400 to 1.0

April 1, 2007-June 30, 2007 0.400 to 1.0

July 1, 2007-Sept. 30, 2007 0.650 to 1.0

Oct. 1, 2007-Dec. 31, 2007 0.850 to 1.0

Jan. 1, 2008-March 31, 2008 0.900 to 1.0

April 1, 2008-June 30, 2008 0.900 to 1.0

July 1, 2006-Sept. 30, 2008 0.900 to 1.0

Oct. 1, 2008-Dec. 31, 2008 0.900 to 1.0

Jan. 1, 2009 and thereafter 5.250 to 1.0

Table 3: Minimum Consolidated EBITDA

Period Consolidated EBITDA

Dec. 1, 2006-June 30, 2007 $25 million

July 1, 2007-July 31, 2007 $30 million

Aug. 1, 2007-Aug. 31, 2007 $40 million

Sept. 1, 2007-Sept. 30, 2007 $40 million

Oct. 1, 2007-Oct. 31, 2007 $48 million

Nov. 1, 2007-Nov. 30, 2007 $48 million

Dec. 1, 2007-Dec. 31, 2007 $48 million

Jan. 1, 2008-Jan. 31, 2008 $55 million

Feb. 1, 2008-Feb. 29, 2008 $55 million

March 1, 2008-March 31, 2008 $55 million

April 1, 2008-April 30, 2008 $55 million

May 1, 2008-May 31, 2008 $55 million

June 1, 2008-June 30, 2008 $55 million

July 1, 2008-July 31, 2008 $57 million

Aug. 1, 2008-Aug. 31, 2008 $57 million

Sept. 1, 2008-Sept. 30, 2008 $57 million

Oct. 1, 2008-Oct. 31, 2008 $60 million

Nov. 1, 2008-Nov. 30, 2008 $60 million

Dec. 1, 2008-Dec. 31, 2008 $60 million

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