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Isle of Capri amends definitions, covenants under credit agreement
By Tali David
Minneapolis, July 2 - Isle of Capri Casinos, Inc. entered into a fifth amendment to its credit agreement on Tuesday, according to an 8-K filed with the Securities and Exchange Commission.
Wells Fargo Bank, NA is the administrative agent.
The following changes were made to the credit agreement dated as of July 26, 2007:
• The definitions of adjusted base rate margin, adjusted Libor margin and commitment fee percentage were amended to add a new pricing tier to correspond to an additional consolidated total leverage ratio range.
The Libor margin now ranges from 175 basis points to 325 bps. This includes a new pricing tier; when the leverage ratio is greater than or equal to 6.5 to 1, the margin is 325 bps. The interest rate was previously Libor plus 175 bps to 300 bps.
The commitment fee - previously 25 bps to 50 bps - now ranges from 25 bps to 55 bps. This includes a new pricing tier; when the leverage ratio is greater than or equal to 6.5 to 1, the fee is 55 bps; and
• The consolidated total leverage ratio and interest coverage ratio covenants were amended to provide greater flexibility for quarters ending after May 1, 2013.
Specifically, the maximum consolidated total leverage ratio is 7.25 to 1 from May 1 through April 30, 2014; 7 to 1 from May 1, 2014 through April 30, 2015; 6.75 to 1 from May 1, 2015 through Jan. 31, 2016; 6.5 to 1 from Feb. 1, 2016 through Oct. 31, 2016; and 6.25 to 1 on Nov. 1, 2016 and after.
The minimum interest coverage ratio is 1.9 to 1 from May 1 through April 30, 2015; and 2 to 1 on May 1, 2015 and after.
Isle of Capri is a St. Louis-based developer, owner and operator of branded gaming facilities and related lodging and entertainment facilities.
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