RTI International amends loan to modify interest coverage requirement

By Sara Rosenberg

New York, Sept. 8 - RTI International Metals Inc. amended its credit facility on Tuesday, revising the interest coverage ratio to exclude interest paid under the term loan and the Canadian credit facility from the calculation, according to an 8-K filed with the Securities and Exchange Commission.

The amendment also modified the net debt to EBITDA ratio to permit certain charges to be added back in to net income for purposes of determining EBITDA.

Pricing on the facility, which, following the amendment, will only include a $200 million revolver, was increased to a range of Libor plus 100 basis points to 212.5 bps based on leverage.

The facility fee can range from 25 bps to 37.5 bps based on leverage.

National City Bank is the administrative agent on the deal.

A condition of the amendment is that the company repay the remaining balance of its $225 million senior term loan and its existing credit facility between RTI-Claro Inc. and National City Bank.

Another condition is that the company receives $75 million in proceeds from a capital market transaction.

On Tuesday, the company announced that it is selling 5 million shares of its common stock and that proceeds from the offering will be used to repay the balance outstanding under its term loan, and repay the balance outstanding under its RTI-Claro facility.

Net proceeds from the stock sale are estimated to be about $94.9 million.

RTI International is a Pittsburgh-based producer of titanium mill products.

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