Pope & Talbot amends loan, revising EBITDA covenant, eliminating prepayment premiums

By Sara Rosenberg

New York, Jan. 5 - Pope & Talbot Inc. amended its credit facility, revising EBITDA requirements and eliminating prepayment premiums in connection with voluntary prepayments of the term loans other than a voluntary prepayment in full, according to an 8-K filed with the Securities and Exchange Commission Friday.

The amendment reduced the company's required level of EBITDA for the four-quarter periods ending June 30, 2007 and Sept. 30, 2007 to $30 million from $35 million.

In addition, the amendment eliminated the $40 million limit on cash borrowings under the $75 million revolver and eliminated the requirement that the opinion received from its independent registered public accounting firm for 2006 and subsequent years not express doubt about its ability to continue as a going concern.

Furthermore, a 1% fee was added for any reduction of the $75 million revolver commitment prior to June 29, 2008.

The amendment is effective as of Dec. 31.

Pope & Talbot is a Portland, Ore.-based forest products company.

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