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Russ Berrie amends loan, changing size, covenants and pricing
By Sara Rosenberg
New York, March 23 - Russ Berrie & Co. Inc. amended its credit facility, reducing the size, revising covenants and increasing pricing, according to an 8-K filed with the Securities and Exchange Commission on Monday.
The credit facility commitments now consist of a $50 million revolver and an $80 million term loan, compared to the previous commitment size of $75 million for the revolver and $100 million for the term loan.
As for covenants, the minimum fixed-charge coverage ratio is now 1.20:1.00 for the first two quarters of 2009, 1.15:1.00 for the third quarter of 2009, 1.25:1.00 for the fourth quarter of 2009 and the first quarter of 2010, and 1.35:1.00 for each fiscal quarter thereafter. Prior to the amendment, the requirement was 1.25:1.00, with a step-up to 1.35:1.00 at June 30, 2010.
The maximum total debt to EBITDA ratio is now 4.00:1.00 for the first two quarters of 2009, 3.75:1.00 for the third quarter of 2009, 3.50:1.00 for the fourth quarter of 2009, 3.25:1.00 for the first three quarters of 2010 and 2.75:1.00 for the fourth quarter of 2010 and each fiscal quarter thereafter. Prior to the amendment, the requirement was 3.25:1.00, with a step-down to 3.00:1.00 at June 30, 2009 and 2.75:1.00 at Dec. 31, 2010.
Pricing on the facility can now range from Libor plus 200 basis points to 425 bps depending on debt to EBITDA, with initial pricing following the amendment set at a minimum of Libor plus 400 bps. Previously, pricing on the facility could range from Libor plus 200 bps to 300 bps.
The amendment was completed on March 20. At that time, the company repaid $9.2 million of its term loan using revolver borrowings.
Bank of America is the administrative agent on the deal.
Russ Berrie is an Oakland, N.J.-based designer, developer and distributor of infant and juvenile branded products.
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