Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers R > Headlines for Royster-Clark Inc. > News item |
Royster-Clark amends credit facility, required to obtaining refinancing commitment by September
By Peter Heap
New York, March 28 - Royster-Clark, Inc. amended its credit facility to waive a covenant violation and modify the requirements for the remaining term of the loan.
As part of the amendment, the New York City-based distributor of agricultural products is required to obtain and accept a written commitment to refinance the facility by Sept. 30. The refinancing must repay in full the current credit facility on or before its maturity in April 2004.
Royster-Clark's covenant violation concerned the net worth provision on Dec. 31, 2002, according to a filing with the Securities and Exchange Commission.
The amendment, agreed on March 25, waives the violation and amends covenants for the remainder of the facility's life.
In addition, the amendment reduces the available borrowing capacity to $205 million from $245 million and increases interest rates by 25 basis points to Libor plus 375 basis points through September 2003, 50 basis points in October 2003, 75 basis points in November 2003 and 125 basis points to Libor plus 475 basis points after that.
Royster-Clark also paid a 50 basis points amendment fee.
The credit facility is via U.S. Bancorp NA as agent.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.