Cenveo amends loan to allow note buyback, delay covenant step down

New York, June 6 - Cenveo, Inc. said it executed an amendment to its credit agreement to allow it to repurchase the remaining $135 million of its senior subordinated notes due December 2013 and to delay a step down in a leverage covenant.

The amendment, which is expected to close this week, pushes back until the first quarter of 2013 the change in the first lien leverage covenant ratio to 2.25 times from the current 2.5 times.

Cenveo will be able to buy back the notes as long as it maintains liquidity thresholds.

The company also announced that it simultaneously executed an agreement for the $65 million add-on term loan that was launched on May 30. Closing is also expected this week.

Proceeds from the new loan will initially be used to repay revolver borrowings and fees and expenses. Capacity available on the revolver will then be used to refinance the senior subordinated notes.

"We are pleased with this financing amid strong demand and despite recent volatility in the capital markets," Robert Burton, chairman and chief executive officer, said in a news release.

"The completion of this financing and amendment along with our anticipated cash flow will allow us to take out all of our remaining 2013 senior subordinated notes and eliminate significant maturities until 2016."

Cenveo is a Stamford, Conn., provider of print and related resources.

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