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NN amends $28.6 million of senior notes, establishes new covenants
By Lisa Kerner
Charlotte, N.C., March 10 - NN, Inc. amended its senior notes due April 2014 with Prudential Capital.
There is currently $28.6 million outstanding under the notes, which carry an interest rate of 8.5%, a company news release said.
Under the amended agreement, NN will not permit consolidated funded debt to exceed 60% of consolidated total capitalization on the restatement closing date through June 29, 61% of consolidated total capitalization on June 30 through Sept. 29, 2010, 62% of consolidated total capitalization on Sept. 30, 2010 through March 30, 2011, 61% of consolidated total capitalization on March 30, 2011 through June 29, 2011 and 60% of consolidated total capitalization thereafter, according to a form 8-K filed with the Securities and Exchange Commission.
Also, the leverage ratio must not be greater than:
• 6.5 to 1.0 for the quarter ending Sept. 30, 2010:
• 5.57 to 1.0 for the quarter ending Dec. 31, 2010;
• 3.94 to 1.0 for the quarter ending March 31, 2011;
• 2.77 to 1.0 for the quarter ending June 30, 201l; and
• 2.75 to 1.0 for the quarter ending Sept. 30, 2011 and thereafter.
According to NN vice president and chief financial officer James H. Dorton, the amendments were necessary to establish new financial covenants and to replace those that were due to expire within 2010.
The existing facility was previously amended and restated as of March 13, 2009.
NN is a Johnson City, Tenn.-based manufacturer and supplier of high precision metal bearing components, industrial plastic and rubber products and precision metal components.
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