| On October 27, 2009, Key entered into an amendment to its senior secured revolving credit facility due 2012. With the amendment, the company reduced the total available principal amount under the facility from $400M to $300M to reflect the current needs of Key's business. As of October 27, 2009, the company had $87.8M in outstanding borrowings under the facility and $43.2M in outstanding letters of credit, leaving, under the amended facility, approximately $169M available to borrow. Concurrently with the amendment process, Key also replaced the commitment held by Lehman Commercial Paper with a new lender so the $300M commitment will be fully available. The company retained the $100M accordion feature in the credit facility, allowing for an increase in the facility subject to lenders' approval, should Key's future needs and economic conditions warrant. Among other modifications, the amendment removed the requirement to maintain a ratio of maximum consolidated debt to EBITDA, and replaced it with a requirement to maintain a 45% consolidated debt to capitalization ratio together with a requirement to maintain a minimum ratio of senior secured debt to EBITDA. In addition, certain other covenants were modified which will increase Key's ability to invest internationally. :theflyonthewall.com |
