Reader's Digest amends loan, changing pricing grid, consolidated leverage ratio

By Sara Rosenberg

New York, Oct. 4 - The Reader's Digest Association, Inc. amended its revolving credit facility, changing the pricing grid (see table) and the consolidated leverage ratio, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The consolidated leverage ratio is now set at than 4.75 to 1.00 as of Sept. 30, 4.25 to 1.00 as of Dec. 31, 4.00 to 1.00 as of March 31, and 3.50 to 1.00 as of the last day of any fiscal quarter ending after March 31.

The amendment was completed on Sept. 28.

JPMorgan is the administrative agent on the deal.

Reader's Digest is a Pleasantville, N.Y.-based magazine publisher.

Table: Pricing Grid

Consolidated Leverage Ratio Eurodollar Spread Commitment Fees

=4.0 2.25% 0.500%

=3.5 and <4.0 2.00% 0.500%

=3.25 and <3.5 1.75% 0.500%

=3.0 and <3.25 1.50% 0.375%

=2.5 and <3.0 1.25% 0.250%

=2.0 and <2.5 1.00% 0.200%

=1.5 and <2.0 0.75% 0.175%

<1.5 0.50% 0.150%

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