Israel’s Lumenis has amended certain terms of its financing arrangements with Bank Hapoalim. The amendments extend the $50 million available on its revolver until December 31, 2003, and modify certain covenants and other terms and provisions in its loan agreements.
The Company's existing revolving credit agreement of $50 million has been extended from July 1, 2003 through December 31, 2003. Previously it had been scheduled to be reduced to $35 million on July 1, 2003. At March 31, 2003 approximately $47.6 million was outstanding under the revolver.
Under its loan agreements, the company is required to maintain a minimum EBITDA amount, as defined, on a cumulative basis at the end of each quarter in 2003. The required minimum cumulative amounts have been reduced. For the second quarter 2003 the cumulative minimum EBITDA amount is five million dollars, for the third quarter $17 million and for the full year $36.7 million.
Under its term loan agreement, the company has a $10 million semi-annual principal payment due October 2003 and a five million dollar deferred payment due in December 2003. The company has agreed that it will use the net proceeds, or at least three million dollars, from the previously announced sale of its industrial laser business to prepay a portion of the October payment by July 31, 2003.
The Company sold its industrial laser business in May for cash proceeds of $6.3 million before settlement of certain retained liabilities. The Company will pay Bank Hapoalim a total fee of $200,000 related to the above-described amendments of the revolving credit agreement.
Lumenis develops, manufactures, and markets proprietary laser and intense pulsed light devices. Its systems are used in a variety of aesthetic, ophthalmic, surgical and dental applications, including skin treatments, hair removal, non-invasive treatment of vascular lesions and pigmented lesions. — (menareport.com)
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