Tasty Baking amends credit facility, revising pricing and covenants

By Sara Rosenberg

New York, Aug. 2 - Tasty Baking Co. amended its credit facility, increasing pricing and changing the maximum operating leverage ratio and minimum required EBITDA through the fourth quarter of 2011, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Pricing on the facility is now Libor plus 450 basis points from July 30 until compliance certificates for the fiscal year ending Dec. 25, 2010 are reviewed by the agent and Libor plus 400 bps until compliance certificates for the fiscal year ending Dec. 31, 2011 are reviewed by the agent.

Additionally, the liquidity ratio covenant was changed during the remainder of 2010 and during most of 2011.

The amendment also prohibits cash dividends to shareholders in 2011 and beyond if the pending sale of the company's Hunting Park and Fox Street properties in Philadelphia does not occur on or before Dec. 31, 2010.

The amendment was completed on July 30 but was effective as of July 25.

Citizens Bank of Pennsylvania is the administrative agent on the deal.

Tasty Baking is a Philadelphia-based manufacturer, co-packager and seller of sweet baked goods.

© 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.