National Financial Partners Corp. says its lenders have agreed to change the maximum consolidated leverage ratio requirements.
NFP, New York, a financial services distribution network, says an amendment to its credit agreement will give it more flexibility and demonstrates the confidence of NFP’s banks in its business.
The amended facility will increase the maximum consolidated leverage ratio for the 4 quarters ending Sept. 30, 2009.
The agreement will reduce the maximum amount available under the credit facility to $225 million, from the current level of $250 million, June 30, 2009, and to $200 million Dec. 31, 2009, NFP says.
The interest rate on borrowings under the amended credit agreement was increased by between 1.75 percentage points and 2.25 percentage points for the term of the agreement, depending primarily on the consolidated leverage ratio, NFP says.