Invacare amends credit agreement
ELYRIA, Ohio – Invacare has amended its credit agreement, giving the company more flexibility on its maximum leverage ratio financial covenant through Sept. 30, 2014, according to an announcement. Per the agreement, which went into effect Jan. 31, Invacare’s maximum leverage ratio for the first three quarters of 2014 has been increased. The agreement also allows the company to add back to EBITDA up to $20 million for one-time cash restructuring charges, an increase of $5 million from the previous agreement. Invacare has also reduced its revolving credit facility to $100 million from $250 million through the October 2015 maturity date of the facility. “The company is actively managing its capital structure and reducing debt levels as we work through the phase of the consent decree with the United States Food and Drug Administration,” said Gerald Blouch, president and CEO, in the release. “Over the first nine months of 2013, we reduced our debt outstanding by $179.2 million to a total debt outstanding of $58.9 million as of Sept. 30, 2013. We are confident that we will successfully exit this challenging period and begin to regain our custom power wheelchair market share.” Invacare continues to work through a consent decree with the FDA that limits production at the company’s Taylor Street wheelchair manufacturing facility.