Radnor amends revolver, upping size and rates

By Sara Rosenberg

New York, April 10 - Radnor Holdings Corp. amended its revolving credit facility, increasing the size to $85 million and increasing the interest rate, according to an 8-K filed with the Securities and Exchange Commission Monday.

The revolver can now carry an interest rate anywhere from Libor plus 175 to 325 basis points, based on availability.

In addition, the amendment provides that the fixed-charge coverage ratio requirement will not be applicable until the second fiscal quarter of 2006 and will only be tested if undrawn availability falls below $10 million or upon the occurrence and continuation of a default.

Furthermore, the limit on permitted capital expenditures for calendar year 2006 was decreased to $17.5 million.

The amendment was completed on April 4, but is effective as of March 31.

Radnor also completed a $23.5 million tranche C loan on April 4 that was provided by the holders of its senior secured floating-rate notes.

Proceeds from this loan, which carries an interest rate of Libor plus 725 bps, were used to repay some revolver debt. The interest rate on this tranche C will increase by 25 bps on a quarterly basis starting April 15, 2007 through Oct. 16, 2008.

As additional consideration for the tranche C loan, the company issued to the lenders seven-year detachable warrants to purchase 49 shares of the company's voting common stock and 472 shares of the company's nonvoting common stock.

Radnor is a Radnor, Pa.-based food packaging and specialty chemicals company.

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