The Dolan Company (NYSE: DM) announced today that it entered into the Seventh Amendment to its Third Amended and Restated Credit Agreement dated December 6, 2010.
In general, the Seventh Amendment provides the Company with access to its revolving credit facility while the Company and lenders negotiate a term sheet for restructuring the Company’s balance sheet. The Amendment provides that an HIG Capital affiliate, Bayside Capital, Inc., which currently holds participation interests covering a majority of the indebtedness outstanding under the Credit Agreement, can become a lender under the Credit Agreement, and requires the Company and its lenders to agree on a term sheet for restructuring the Company’s capital structure promptly after receipt of a restructuring proposal from Bayside Capital. The Seventh Amendment also temporarily waives the Company’s default with respect to certain covenants and obligations existing or anticipated as of December 31, 2013, reduces the amount available in the revolving credit facility, increases the interest rate on outstanding loan amounts by 2% per year, requires an additional fee equal to 2% of the sum of the outstanding term loans and revolving commitments, and requires the Company to have engaged a chief restructuring officer. As previously announced, the Company appointed Kevin Nystrom, managing director of Zolfo Cooper, as its chief restructuring officer.
The Dolan Company is a leading provider of professional services and business information to the legal, financial and real estate sectors. Its Professional Services Division provides specialized outsourced services to the legal profession primarily through its subsidiaries DiscoverReady and Counsel Press. DiscoverReady provides outsourced discovery management and document review services to major companies and law firms. Counsel Press is the nation’s largest provider of appellate services to the legal community. The company’s Business Information Division publishes business journals, court and commercial media and other highly focused information products and services, operates web sites and produces events for targeted legal and professional audiences in each of the 19 geographic markets that it serves across the United States.