Manitowoc amends loan, changing financial covenants

By Sara Rosenberg

New York, Feb. 11 - The Manitowoc Co. Inc. obtained a waiver and amended its credit facility, modifying financial covenants that became more restrictive in the fourth quarter of 2002. Deutsche Bank Trust Co. is the administrative agent on the loan.

More specifically, the company changed the minimum consolidated interest coverage ratio (see table 1), the minimum consolidated EBITDA (see table 2), the maximum consolidated total leverage ratio (see table 3) and the minimum consolidated fixed charge coverage ratio to no less than 1.50:1.00, according to a filing with the Securities and Exchange Commission.

"The company believes these modified covenants will better enable management to achieve the company's business plan and goals in the current economic environment," the filing said.

Manitowoc is a Manitowoc, Wis. diversified industrial manufacturer with positions in its three principal markets: cranes; foodservice equipment; and marine services in the Great Lakes region.

Table 1: Manitowoc's new minimum consolidated interest coverage covenant

Fiscal Quarter Ending Ratio

Dec. 31, 2002 2.50:1.00

March 31, 2003 2.50:1.00

June 30, 2003 2.50:1.00

Sept. 30, 2003 2.50:1.00

Dec. 31, 2003 2.75:1.00

March 31, 2004 2.75:1.00

June 30, 2004 and thereafter 3.00:1.00

Table 2: Manitowoc's new minimum consolidated EBITDA covenant

Fiscal Quarter Ending Amount

Dec. 31, 2002 $155 million

March 31, 2003 $155 million

June 30, 2003 $155 million

Sept. 30, 2003 $155 million

Dec. 31, 2003 $155 million

March 31, 2004 $160 million

June 30, 2004 $165 million

Sept. 30, 2004 $165 million

Dec. 31, 2004 $165 million

March 31, 2005 $170 million

June 30, 2005 $175 million

Sept. 30, 2005 $175 million

Dec. 31, 2005 $180 million

March 31, 2006 $180 million

June 30, 2006 $180 million

Sept. 30, 2006 $180 million

Dec. 31, 2006 $190 million

March 31, 2007 $200 million

Table 3: Manitowoc's new maximum consolidated total leverage covenant

Period Ratio

Dec. 31, 2002 through and including Dec. 30, 2003 4.25:1.00

Dec. 31, 2003 through and including June 29, 2004 4.00:1.00

June 30, 2004 through and including Sept. 29, 2004 3.75:1.00

Sept. 30, 2004 through and including Dec. 30, 2004 3.50:1.00

Dec. 31, 2004 through and including March 30, 2005 3.25:1.00

Thereafter 2.85:1.00

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