FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Invacare Amends, Reduces Credit Facility

May 30, 2013, 07:31 AM
Filed Under: Healthcare

Invacare Corporation amended its credit agreement effective May 30, 2013, providing the company with additional flexibility on its financial covenants through December 31, 2013.

''We are pleased to have completed this amendment to our credit agreement. We now have additional financial flexibility related to our debt covenants, which is important as we continue to work through the phase of the consent decree with the United States Food and Drug Administration that limits production at our Taylor Street wheelchair manufacturing facility in Elyria, Ohio. We are confident that we will exit this challenging period as an even stronger company, and we would like to thank our lenders for their support,'' said Gerald B. Blouch, president and chief executive officer.

With the amendment the required leverage ratio increases to a maximum of 4.00 to 1.00, while the required interest coverage ratio decreases to a minimum 3.00 to 1.00. On January 1, 2014, the leverage and interest coverage ratios required under the credit agreement will each revert back to the levels pre-existing the amendment at 3.50 to 1.00. In calculating the Company's EBITDA for purposes of determining the ratios, the credit agreement amendment also provides for the add back to EBITDA of up to an additional $15 million for future one-time cash restructuring charges.

In order to align its debt capacity with anticipated needs, the Company will reduce its revolving credit facility effective May 30, 2013 to $250 million from $400 million through the October 2015 maturity date of the facility, and will limit its borrowings to an amount not to exceed $200 million through December 31, 2013.

Invacare Corporation, headquartered in Elyria, Ohio, is a manufacturer and distributor of innovative home and long-term care medical products that promote recovery and active lifestyles.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.