Briggs & Stratton (NYSE:BGG) has amended covenants in its credit agreement.
Among other things, those amendments suspend (until July 26) the requirement that it maintain a consolidated fixed charge coverage ratio of no less than 1:1, whenever its availability under the revolving credit facility is less than $50M.
It instead requires the company and nits to maintain at least $12.5M capacity under the revolver.
The amendment also increases the amount the company can borrow outside the credit agreement to the greater of $300M and 22.5% of assets. And it reduces the maximum aggregate amount available for borrowing or letters of credit by $25M, to $600M.
It also increases applicable margins paid to lenders as part of variable interest rates for Libor and base rate borrowings by 100 basis points, as well as incorporating a Libor floor of 1%.