Mar. 1, 2010
Timminco Limited ("Timminco") announced today that its senior secured lender has agreed to eliminate the requirement for an additional US$5 million of minimum availability reserve that would have become effective as of March 1, 2010.
Under the Credit Agreement dated April 15, 2005, as amended, with Bank of America, N.A., Timminco is able to access funds up to the amount of the availability under the revolving credit facility. Availability is equal to
(i) the lesser of the borrowing base and the revolving credit commitment under the revolving credit facility, minus.
(ii) the sum of the amounts borrowed under such facility, and the minimum availability reserve. In the fourth quarter of 2009, the Credit Agreement was amended to increase the minimum availability reserve from US$2 million to US$7 million, effective for the 45 day period from February 1 to March 17, 2010. At the end of January, this period was postponed by one month. The current amendment eliminates this additional requirement entirely, such that the minimum availability reserve will remain at its current level of US$2 million.
