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Banking industry

TBS International Secures Amendments to Credit Facilities and Loan Agreements

Strategic Insights

— 1 min read

TBS International plc has secured amendments to its credit facilities and loan agreements with its syndicate of lenders and other financial institutions, addressing concerns over the company's ability to meet its financial commitments. The amendments modify the financial covenants and other terms of the Financing Facilities, including covenants related to collateral coverage, leverage ratio, and cash balance. This move is expected to alleviate uncertainty surrounding the company's financial future.

Key Takeaways:

  • TBS International plc has secured amendments to its credit facilities with Bank of America, The Royal Bank of Scotland, and DVB Group Merchant Bank, as well as loan agreements with AIG Commercial Equipment, Commerzbank AG, Berenberg Bank, and Credit Suisse.
  • The amendments modify financial covenants related to collateral coverage, consolidated leverage ratio, consolidated fixed interest coverage ratio, consolidated fixed charge coverage ratio, and minimum cash balance.
  • TBS currently expects to be in compliance with all financial covenants and other terms of the amended Financing Facilities through maturity.
  • The long-term portion of the company's outstanding debt at March 31, 2010 will be classified as long-term debt in its consolidated balance sheet.
  • The amendments are expected to remediate uncertainty regarding TBS's ability to fulfill its financial commitments as they become due.
  • TBS's Form 8-K to be filed with the Securities and Exchange Commission provides additional details.
  • TBS's business operates on key trade routes between Latin America and China, Japan and South Korea, and select ports in North America, Africa, the Caribbean, and the Middle East.

Statistics:

  • TBS International plc's outstanding debt at March 31, 2010 will be classified as long-term debt in its consolidated balance sheet.
  • The company has secured amendments to its credit facilities with its syndicate of lenders, led by Bank of America, The Royal Bank of Scotland, and DVB Group Merchant Bank, as well as loan agreements with AIG Commercial Equipment, Commerzbank AG, Berenberg Bank, and Credit Suisse.
  • The company's financial covenants include collateral coverage, consolidated leverage ratio, consolidated fixed interest coverage ratio, consolidated fixed charge coverage ratio, and minimum cash balance.

Sources:

  • Marketwire, TBS International plc (NASDAQ: TBSI) press release, May 07, 2010

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