MDC lowers revolver commitments to $250 million, relaxes covenants

By Sarah Lizee

Olympia, Wash., March 15 – MDC Partners Inc. and subsidiary Maxxcom Inc. elected to reduce the total commitments under their senior secured revolving credit facility with Wells Fargo Capital Finance, LLC as administrative agent to $250 million from $325 million, according to an 8-K filing with the Securities and Exchange Commission.

The companies entered on March 12 into an amendment to the facility, increasing the total leverage ratio applicable on each testing date after amendment close through the period ending Dec. 31, 2020 to 6.25 to 1.00 from 5.50 to 1.00. The total leverage ratio applicable on each testing date after Dec. 31, 2020 will revert to 5.50 to 1.00.

The amendment also provides the modification of some restrictive covenants in the credit agreement to provide the company with increased flexibility regarding the ability to repurchase outstanding debt and/or notes.

The homebuilding and financial services company is based in Denver.

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