ELKHART, Ind., Dec. 16 /PRNewswire-FirstCall/ -- Patrick Industries, Inc. (Nasdaq: PATK) announced today that it has entered into a fourth amendment (the "Fourth Amendment") to its senior secured credit agreement dated May 18, 2007 (the "Credit Agreement"). The Fourth Amendment includes the modification of certain definitions, terms and reporting requirements to better align with the Company's updated operating and cash flow projections for fiscal year 2010.
Pursuant to the Fourth Amendment entered into on December 11, 2009, the financial covenants were modified to establish new quarterly minimum consolidated earnings before interest, taxes, depreciation and amortization ("EBITDA") requirements that will replace the existing minimum one-month and two-month requirements beginning with the fiscal quarter ended March 28, 2010 . Additionally, monthly borrowing limits under the revolving commitments were reset in conjunction with updated projected monthly cash flows for 2010. Borrowings under the revolving line of credit are subject to a borrowing base, up to a maximum borrowing limit of $28.0 million for fiscal year 2010. The interest rates for borrowings under the revolving line of credit and the term loan, and the expiration date of the Credit Agreement remained unchanged.
"We are pleased to have entered into this amendment of our credit agreement that reflects the modifications made to our operating plan for the 2010 fiscal year in anticipation of improving market conditions in the RV industry and stabilization in the manufactured housing industry and industrial markets. The amendment further reflects the Company's forward operating momentum and the strong relationship we have with our senior lenders who have been extremely supportive as we continue to reduce our leverage position. The progress we have made has taken a total team effort and we are extremely appreciative of the continued support of our banking group, customers, suppliers, shareholders, and team members as we are cautiously optimistic about what 2010 will bring from a market perspective," stated Todd Cleveland, President and Chief Executive Officer.