Viad amendment adds ‘increased financial flexibility’ to pursue growth

By Wendy Van Sickle

Columbus, Ohio, March 1 – Viad Corp. amended its credit agreement to “provide the company with increased financial flexibility to pursue its strategic growth plan,” according to a Tuesday press release.

The amendment’s revisions include the following:

• The maximum leverage ratio was increased to 3.5 times from 2.75 times;

• Unlimited acquisitions are permitted, provided pro forma leverage ratio does not exceed 3 times, up from 2.25 times;

• Unlimited return of capital is permitted, provided the pro forma leverage ratio does not exceed 2.5 times with no minimum liquidity requirement, up from 2 times with a minimum liquidity. Otherwise, return of capital is limited to $20 million; and

• A provision was added allowing unlimited unsecured debt, provided the pro forma leverage ratio does not exceed 3 times. Otherwise, unsecured indebtedness is limited to 10% of consolidated net worth.

“This amendment to our credit facility, together with our strong balance sheet and liquidity position, gives us additional firepower as we continue to pursue acquisitions that advance our strategic goals,” Steve Moster, president and chief executive officer of Viad, said in the release.

The Phoenix-based company provides services for exhibition organizers as well as travel and recreation services.

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