Standard Pacific Corp. today announced it has successfully amended its revolving credit facility and its $100 million Term Loan A and $250 million Term Loan B agreements.
The company said the amendments, among other things, provide it with additional operating flexibility under the facilities' borrowing base, consolidated tangible net worth, and minimum interest coverage covenants as well as tighten the leverage covenant over time and modestly revise pricing. The agreements with lenders reduce the total commitment available under the Revolver from $1.1 billion to $900 million and the outstanding principal amount of the Term Loan B from $250 million to $225 million, making the combined commitments under the facilities more consistent with the Company's reduced capital needs.
"The amendments to our financial covenants, combined with the extension of the revolving credit facility earlier in the year to May 2011, provide us with important additional flexibility to manage our business during this industry downturn," said Stephen J. Scarborough, Standard Pacific chairman, CEO and president. "We appreciate the continuing support of our bank group and the efforts of Banc of America Securities LLC and J.P. Morgan Securities, Inc., our Joint Lead Arrangers, in driving the amendment process to a successful conclusion."