ACCO amends facility for flexibility to pay dividends, buy back stock

By Marisa Wong

Madison, Wis., June 27 – ACCO Brands Corp. entered into on June 26 a second amendment to its amended and restated credit agreement dated May 13, 2013 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increases the company’s flexibility to pay dividends and repurchase its shares based on its consolidated leverage ratio.

The company may now pay dividends and/or repurchase shares in a total amount equal to the sum of (a) the greater of (i) $25 million and (ii) 1% of the company’s consolidated total assets, plus (b) an aggregate amount not to exceed $60 million in any fiscal year, provided the company’s consolidated leverage ratio after giving pro forma effect to the restricted payment is less than or equal to 4.0 to 1.0 but more than 2.5 to 1.0, plus (c) an additional amount, provided the company’s consolidated leverage ratio after giving pro forma effect to the restricted payment is less than or equal to 2.5 to 1.0, plus (d) any net equity proceeds.

The amendment also makes other technical changes to the credit agreement, the filing noted.

ACCO is a Lincolnshire, Ill.-based office supply manufacturer.

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