Ennis amends and restates credit facility to update borrowing rates

By Jennifer Chiou

New York, Feb. 23 - Ennis, Inc. entered into an amendment and restatement of its $150 million revolving credit facility with a syndicate of lenders led by Bank of America, NA, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Borrowings bear interest at Libor plus 100 basis points to 225 bps, and the initial interest rate in effect is Libor plus 150 bps, or 1.77%, which will remain in effect until after the company files its compliance certificate for the fiscal quarter ending Feb. 28.

As reported, the facility may be expanded to up to $200 million. It matures on Aug. 18, 2016.

The facility includes the following covenants:

• Minimum tangible net worth of $115 million as of Nov. 30, with step-ups equal to 25% of consolidated net income beginning with the fiscal quarter ending Feb. 28;

• Maximum total leverage ratio of 3.00:1.00; and

• Minimum fixed-charge coverage ratio of 1.25:1.00.

Ennis is a Midlothian, Texas-based producer and seller of business forms, apparel and other business products.

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