Champion Enterprises Completes Amendment of Its Credit Agreement
27 Octubre 2008 - 6:29AM
PR Newswire (US)
TROY, Mich., Oct. 27 /PRNewswire-FirstCall/ -- Champion
Enterprises, Inc. (NYSE:CHB), a leader in factory-built
construction, announced today that it has completed an amendment of
its senior secured credit agreement. The amendment generally covers
the period beginning Sept. 27, 2008 and ending Jan. 2, 2010. During
the effected period, the financial covenants have been amended to
eliminate the maximum senior leverage ratio, minimum interest
coverage ratio and minimum fixed charge ratio in lieu of new
minimum quarter-end liquidity and minimum twelve-month EBITDA
covenants. During its third quarter ended Sept. 27, 2008, the
Company borrowed $25.0 million under its revolving line of credit.
Pursuant to the amendment, the Company repaid $10.0 million of the
revolving loan and $23.5 million of its term debt allocated pro
rata among the U.S. dollar denominated and Sterling denominated
term loans, both due 2012. These transactions, together, resulted
in a net debt reduction of $8.5 million. During the effected
period, the interest rates for borrowings under the revolving line
of credit and the U.S. dollar and Sterling denominated term loans
were increased from the London Interbank Offered Rate ("LIBOR")
plus 3.25 percent to LIBOR plus 6.50 percent. For all borrowings,
interest of LIBOR plus 5.00 percent will be paid in cash while the
remaining 1.50 percent may be paid in kind. Additionally, a LIBOR
floor of 3.25 percent was provided for in the agreement. The
interest rates may be reduced if the Company makes additional term
loan prepayments during the effected period. For prepayments
aggregating between $10 and $20 million the rate of interest on all
remaining balances will be reduced to LIBOR plus 5.50 percent (of
which 0.50 percent may be paid in kind); for prepayments
aggregating between $20 and $30 million the rate will be reset to
LIBOR plus 5.00 percent, all paid in cash; and for prepayments
totaling $30 million or more the rate will be reset to LIBOR plus
4.50 percent, all paid in cash. The Company also agreed to reduce
its synthetic letter of credit facility by $16.5 million by moving
approximately $12.2 million of outstanding undrawn letters of
credit to its revolving credit facility and canceling approximately
$4.3 million of unused capacity. As a result, while the total size
of the Company's revolving credit facility remains at $40 million,
its unused capacity now stands at approximately $12.8 million. "We
are pleased to have completed this amendment of our credit
agreement during these trying times in our markets," stated William
Griffiths, chairman, president and chief executive officer of
Champion Enterprises, Inc. "The revised terms reduced Champion's
strong cash position only modestly, and provide the Company with
important additional flexibility through the end of 2009 as we
manage through the uncertainties of today's environment." The
Company plans to release its financial results for the third
quarter ended Sept. 27, 2008 on Nov. 5, 2008. Details for
Champion's quarterly conference call with analysts are available on
its website http://www.championhomes.com/ under the "Investors"
link. About Champion Troy, Michigan-based Champion Enterprises,
Inc., a leader in factory-built construction, operates 32
manufacturing facilities in North America and the United Kingdom
working with independent retailers, builders and developers. The
Champion family of builders produces manufactured and modular
homes, as well as modular buildings for government and commercial
applications. For more information, please visit
http://www.championhomes.com/. DATASOURCE: Champion Enterprises,
Inc. CONTACT: Laurie Van Raemdonck, Vice President, Investor
Relations, +1-248-614-8267, , or Phyllis Knight, Executive Vice
President and CFO, +1-248-614-8200, both of Champion Enterprises,
Inc. Web site: http://www.championhomes.com/ Company News On-Call:
http://www.prnewswire.com/comp/110861.html
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