The revised facility has an interest rate of LIBOR plus 550 basis points, with a 2% LIBOR floor plus additional PIK interest--payment-in-kind--of 2% through March 2011 and 3% thereafter. The accrued PIK interest is payable at maturity. The terms require amortization of $20 million by March 9, 2010 and an additional $20 million by March 9, 2011.
According to a prepared statement by CFO Bruce Riggins, the credit facility extension is giving the company much greater flexibility to execute its business plan. "We expect to be in compliance with all financial covenants for 2009."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
