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Radnor amends revolver to increase size, change covenants
By Sara Rosenberg
New York, Feb. 22 - Radnor Holdings Corp. amended its revolving credit facility, increasing the size to $75 million from $65 million and changing the minimum fixed charge coverage ratio, the maximum ratio of funded debt to EBITDA and capital expenditures covenants, according to an 8-K filed with the Securities and Exchange Commission Tuesday.
The minimum fixed charge coverage ratio was amended to be 0.68 to 1.00 for the quarter ended Dec. 31, 2004 and increasing over time thereafter to 1.15 to 1.00 for the quarter ending Sept. 30, 2005 and for each quarter thereafter.
The maximum ratio of funded debt to EBITDA was amended to be 7.70 to 1.00 for the quarter ended Dec. 31, 2004 and declining over time until reaching 3.75 to 1.00 for the quarter ending March 31, 2007 and for each quarter thereafter.
And, the annual limitation of capital expenditures was increased to $35 million for the fiscal year ended Dec. 31, 2004 and will revert to $25 million for the fiscal year ending Dec. 31, 2005 provided the company applies specified proceeds of certain capital raising transactions to reduce outstanding obligations under the facility, the filing said.
As additional security for borrowings under the facility, the lenders received an assignment of rights under two promissory notes totaling a principal amount of $22.9 million, a pledge of certain stock from an affiliate of the company and a guaranty from the company's president and chief executive officer of the obligations under the facility up to an amount not exceeding $8 million.
The amendment was completed on Feb. 15 and is effective as of Dec. 31, 2004.
Radnor is a Radnor, Pa.-based foam cup and container manufacturer and a manufacturer of expandable polystyrene bead.
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