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PNC Bank Agents Upsize of Virco Credit Facilities

March 23, 2018, 07:00 AM
Filed Under: Furniture & Fixtures

Virco Mfg. Corporation and Virco Inc., a wholly owned subsidiary, entered into a seventeenth amendment to the Revolving Credit and Security Agreement, dated as of December 22, 2011, between the Borrowers and PNC Bank, National Association, as lender and administrative agent. 

The Seventeenth Amendment amended the Credit Agreement by (i) extending the maturity date of the Credit Agreement for three years until March 19, 2023, (ii) allowing dividends and stock buyback up to $2,000,000 in aggregate for any fiscal year, (iii) setting forth the minimum EBITDA financial covenant for fiscal quarter ending April 30, 2018 at ($3,767,000) and two consecutive fiscal quarters ending July 31, 2018 at $6,402,000, (iv) increasing the Maximum Revolving Advance Amount from $50,000,000 to $60,000,000, and (v) setting forth the minimum fixed charge coverage ratio of not less than 1.10 to 1.00 commencing with the consecutive four fiscal quarter period ending October 31, 2018 and measured as of the end of each fiscal quarter until the maturity date of the Credit Agreement. In connection with the Seventeenth Amendment, the Borrowers also agreed to pay to PNC Bank a non-refundable extension fee of $250,000.

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