Black Box, an IT solutions and communications products provider, amended its credit agreement to, among other items, reduce the facility from $200 million to $170 million.

According to a related 8-K filing, PNC Bank served as administrative agent for the amendment and joinder agreement.

The facility includes a $120 million line of credit and a $50 million term loan with an amortization feature that will require payments of $1.25 million for the first four quarters and then $2.5 million per quarter thereafter. The amendment provides for the elimination of the leverage ratio through the first quarter of fiscal 2019; the creation of a Minimum EBITDA (as defined) covenant which gradually increases through the first quarter of fiscal 2019, after which, it is eliminated; the creation of a fixed charge coverage ratio in Q2/19 of 1.0 to 1.0 for Q2/19 and Q3/19 and then steps up to 1.10 to 1.0 thereafter; and a quarterly capital expenditure limitation beginning in Q2/18 through Q1/19. Additionally, the ability of the company to declare or pay dividends or other distributions has been eliminated.

The facility is secured by substantially all of the assets of the borrower and its U.S. subsidiaries, including a pledge of 65% of the voting ownership interests and 50% of the non-voting ownership interests of its foreign subsidiaries that are owned by Black Box or its U.S. subsidiaries.