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Blue Bird Corporation Announces Amendment of Credit Facility
Amendment provides covenant relief through fiscal second quarter 2023 FORT VALLEY, Ga.--(BUSINESS WIRE)-- Today, Blue Bird Corporation (NASDAQ: BLBD), a
About this update from Blue Bird Corporation
[{"type":"text","content":"\nAmendment provides covenant relief through fiscal second quarter 2023\n\n FORT VALLEY, Ga.--(BUSINESS WIRE)--\nToday, Blue Bird Corporation (NASDAQ: BLBD), a leading manufacturer of school and activity buses, announced that it entered into a fourth amendment to its credit facility, dated as of December 12, 2016.\n\nThe Fourth Amendment provides for covenant relief through Blue Bird’s fiscal second quarter year 2023. For the fiscal 2022 period, the net leverage ratio is replaced by a minimum trailing twelve-month EBITDA quarterly covenant, a monthly liquidity test and a three-months rolling unit sold test. For the two quarters of Blue Bird’s fiscal 2023, the total net leverage ratio covenant is increased from 3.50:1:00 to 4:00:1:00.\n\nOther terms of the amended credit facility include a new pricing grid, which is based on the ratio of the Company’s consolidated net debt to EBITDA ratio, additional allowances for the Company to raise junior capital, and an additional $10M of revolver availability.\n\n\"We are pleased to have the continued support of our lending partners,” said Matthew Stevenson, Chief Executive Officer. \"This amendment provides Blue Bird not only with the financial flexibility to continue to operate our business during the Covid-19 pandemic and associated global supply chain disruptions, but also gives us the flexibility to invest in future growth opportunities.”\n\nAdditional details on the terms of the amendment are available in the 8-K filed with the Securities and Exchange Commission on November 29, 2021.\n\nAbout Blue Bird Corporation: Blue Bird (NASDAQ: BLBD) is the leading independent designer and manufacturer of school buses, with more than 550,000 buses sold since its formation in 1927 and approximately 180,000 buses in operation today. Blue Bird’s longevity and reputation in the school bus industry have made it an iconic American brand. Blue Bird distinguishes itself from its principal competitors by its singular focus on the design, engineering, manufacture and sale of school buses and related parts. As the only manufacturer of chassis and body production specifically designed for school bus applications, Blue Bird is recognized as an industry leader for school bus innovation, safety, product quality/reliability/durability, operating costs and drivability. Blue Bird has a rich history of bringing ne...