Viad amends credit agreement to implement covenant waiver period

By Sarah Lizee

Olympia, Wash., Aug. 5 – Viad Corp. amended its credit agreement on Wednesday to implement a covenant waiver period, according to an 8-K filing with the Securities and Exchange Commission.

The amendment suspended the testing of the interest coverage ratio and the leverage ratio for any fiscal quarter ending after the effective date of the amendment on or before June 30, 2022 and continued the minimum liquidity covenant during the period from the effective date of the amendment until the first business day after the company delivers quarterly financial statements and the related compliance certificate for the fiscal quarter ending Sept. 30, 2022.

The amendment also includes a requirement to repay the revolving loans with cash above a certain threshold, subject to reborrowings, certain adjustments to the company’s financial reporting and other covenants, and changes to the guarantor and collateral requirements.

The incremental facility will only be available after the covenant waiver period.

In addition, the amendment continues to set the applicable interest rate at Libor plus 350 basis points, with a 1% Libor floor.

After the covenant waiver period, the margin will be based on a grid subject to leverage, ranging from 175 bps to 300 bps.

The commitment fee is 50 bps during the waiver period. After that, it will be based on leverage and range from 25 bps to 50 bps.

Viad is a Phoenix-based company that provides services for exhibition organizers as well as travel and recreation services.

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