amended its credit line.
The Pittsburgh-based clean air company said it made the changes to a $125 million unsecured credit facility that would have expired in February 2008. The amended $118 million facility consists of a $100 million revolving loan and an $18 million term loan. The facility is secured by a blanket security interest in favor of the lenders and a pledge agreement in favor of the lenders with respect to the stock of certain subsidiaries.
The company wasn't in compliance with the leverage covenant of its former credit facility for the quarter ended Sept. 30. Despite acquiring a waiver from its lenders through Jan. 31, 2006, the company was required to reclassify all existing debt under that facility as short-term. As a result of the amended agreement, all current debt outstanding under the facility will be reclassified as long-term at Dec. 31, 2005.
As under the terms of the former facility, Calgon Carbon may use the revolving credit portion of the amended agreement for working capital, capital expenditures, letters of credit, acquisitions and other general corporate purposes. Interest payments will be based on eurodollar rates with other interest rate options available.
National City Bank of Pennsylvania was the lead arranger and is participating along with PNC Bank, Harris, First Commonwealth Bank and First National Bank of Pennsylvania.
"We are pleased with the amended facility which adequately addresses our needs for flexibility at pricing in line with the former agreement," finance chief Leroy Ball said.