Belden Amends Credit Facility
ST. LOUIS (AP) ¿ Belden Inc., an electronics-components maker, says it has amended its $350 million senior secured revolving credit facility.
Belden officials said the change will boost its borrowing costs but still give the company more flexibility in managing its cash as it weathers weaker global demand for its products.
Belden said late Tuesday that the amendment changes the definition of earnings before interest, taxes, depreciation and amortization, or EBITDA, used in the calculation of the gross debt-to-EBITDA leverage ratio covenant in the agreement.
The amendment boosts the its cost of borrowings under the facility by 100 basis points.As a result of the amendment, Belden's debt-to-EBITDA leverage ratio as of Dec. 31 was 2.2, down from 2.9 before the amendment. The agreement had called for a ratio of 3.5 and there was a risk that the creditors could have found Belden in default without the change. The company incurred about $1.6 million in costs in connection with the change. In December, the company announced plans to cut 1,800 jobs worldwide, or 20 percent of its work force, and consolidate some manufacturing operations, citing a continued softening of demand.
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