| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for ACCO Brands Corp. > News item |
ACCO Brands gets lender OK on modified loan amendment that revises covenants and pricing
By Sara Rosenberg
New York, Dec. 15 - ACCO Brands Corp. received necessary lender approval for an amendment to its senior secured credit facility that provides covenant relief through 2012 and an increase pricing, according to a news release.
Under the amendment, the total leverage ratio, which is currently 3.75 times, was changed to 5.5 times through Dec. 30, 2009, 5.25 times through Dec. 30, 2010, 5.0 times through Dec. 30, 2011 and 4.5 times through June 29, 2012, and 4.0 times thereafter.
Originally, the amendment request asked for the total leverage ratio to be 5.5 times through Sept. 30, 2009, 5.25 times through Dec. 31, 2009, 5.0 times through Dec. 31, 2010, 4.5 times through Dec. 31, 2011 and 4.0 times through Dec. 31, 2012.
Also, the interest coverage ratio, which is currently 3.0 times, was changed to 2.25 times through Dec. 30, 2010, 2.5 times through Dec. 30, 2011, 2.75 times through June 29, 2012 and 3.0 times thereafter.
When lenders were first approached, the company was asking for the interest coverage ratio to be 2.25 times through Dec. 31, 2009, 2.5 times through Dec. 31, 2010, 2.75 times through Dec. 31, 2011 and 3.0 times through Dec. 31, 2012.
As part of the amendment, pricing on the facility was increased to Libor plus 450 basis points from Libor plus 175 bps.
By comparison, under the original request, pricing on the deal was only going to move up to Libor plus 400 bps.
As initially proposed, the amendment increased the unused fee on the revolver to 75 bps and added a 3.25% Libor floor to the deal.
The commitment fee can drop to 50 bps when total leverage is less than 2.5 times.
In addition, the amendment eliminates the company's ability to prepay its subordinated notes.
Citigroup led the amendment process.
ACCO is a Lincolnshire, Ill.-based designer, developer, manufacturer and marketer of branded office products.
© 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.