The Ryland Group, Inc. (NYSE:RYL) on Wednesday (Oct. 17) announced that it has amended its unsecured revolving credit facility and reduced the aggregate commitments from $1.1 billion to $750 million.
The company said in a press release that the amended credit agreement “reflects its reduced capital needs and lowers related unused and administrative fees.” The maturity date of January 2011 and the uncommitted accordion feature to $1.5 billion remain unchanged.
The company also said the amendment provides it “with additional operating flexibility under the consolidated tangible net worth covenant, eliminates the interest coverage covenant, modifies the leverage covenant to increase or decrease based on interest coverage levels with a maximum permitted leverage ratio of 57.5 percent, and revises pricing.”
