Patrick Industries Signs Credit Amendment
Patrick Industries Inc. announced today (Dec. 20) that it has entered into a fifth amendment to its senior secured credit agreement dated May 18, 2007.
The fifth amendment includes the modification of certain definitions, terms and reporting requirements and extends the revolving termination date and term maturity date of the Elkhart, Ind.-based company’s existing senior secured credit facility and related term loan to May 31, 2011, to allow a new facility to be put in place to meet both short-term and long-term operating needs, according to a news release.
Pursuant to the fifth amendment entered into on Dec. 17, financial covenants were modified to reflect the company’s updated operating and cash flow projections. Borrowings under the revolving line of credit, subject to a borrowing base up to a maximum borrowing limit of $28 million, and the interest rates for borrowings under the revolving line of credit and the term loan of the credit agreement, remained unchanged.
“We are pleased to have entered into this amendment and extension of our credit agreement while we continue our efforts to refinance or replace our existing credit facility in the first half of 2011,” said Todd Cleveland, president and CEO. “We are also very appreciative of the support that our senior lenders have continued to provide and the strong relationship we have with each of them. The significant progress we have made in strategically positioning our business model has taken a total team effort, and is a reflection of the continued support of our banking group, customers, suppliers, shareholders, and team members as we head into the new year.”