Lamar looking to amend loan to change size, pricing and covenants

By Sara Rosenberg

New York, March 19 - Lamar Advertising Co. is in the process of seeking an amendment to its senior credit facility that is expected to reduce the revolver size, increase pricing and change covenants, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Covenant revisions are anticipated to include an increase in the maximum permitted total leverage ratio and the addition of a new total senior leverage ratio.

In addition, the amendment would impose additional restrictions on the company's ability to make payments on equity interests or in respect of other debt and provide security in a material portion of its assets.

Also on Thursday, Lamar announced plans to raise about $250 million of gross proceeds through an institutional private placement of senior notes due 2014.

Proceeds from the offering will ultimately be used to repurchase 2 7/8% convertible notes due 2010, but pending that repurchase, the proceeds will be used to temporarily reduce outstanding revolver borrowings.

Lamar is a Baton rouge, La.-based provider of outdoor advertising services.

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