Virco Manufacturing amended its 2011 revolving credit and security agreement. PNC Bank served as lender and administrative agent on the transaction.
According to the related 8-K filing, the amendment (i) extended the maturity date for three years until March 19, 2023, (ii) allowed dividends and stock buyback of up to $2 million in aggregate for any fiscal year, (iii) set forth the minimum EBITDA financial covenant for fiscal quarter ending April 30, 2018 at $3.767 million and two consecutive fiscal quarters ending July 31, 2018 at $6.402 million, (iv) increased the maximum revolving advance amount from $50 million to $60 million, and (v) set 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.
Virco also agreed to pay PNC Bank a non-refundable extension fee of $250,000.
Virco Manufacturing designs, produces and distributes furniture for a range family of customers. The company is also a manufacturer and supplier of moveable educational furniture and equipment for the preschool through 12th grade market in the U.S.
