Libbey Inc. entered into Amendment No. 3 to the Senior Secured Credit Agreement, dated as of April 9, 2014, by and among the Company, Libbey Glass Inc., as borrower, each of the Loan Parties and the lenders party thereto, as amended by Amendment No. 1 to the Credit Agreement on April 9, 2020 and Amendment No. 2 to the Credit Agreement on April 30, 2020.
Amendment No. 3 provides for an extension of the date on which the Borrower is required under the Credit Agreement to make a prepayment of approximately $12 million from the Borrower’s Excess Cash Flow (as defined in the Credit Agreement) from May 7, 2020 to May 17, 2020, subject to certain conditions, including the Borrower’s provision of certain financial, operational and liquidity information to the lenders, and, no later than May 12, 2020, increasing the size of the Board of Directors of the Company from eight directors to ten directors and appointing two independent directors to fill the newly created vacancies.
As previously reported, Amendment No. 1 extended the Borrower’s Excess Cash Flow payment from April 9, 2020 to April 30, 2020, and Amendment No. 2 further extended the Borrower’s Excess Cash Flow payment from April 30, 2020 to May 7, 2020.
About Libbey Inc.
Based in Toledo, Ohio, Libbey Inc. is a glass tableware manufacturer. Libbey operates manufacturing plants in the U.S., Mexico, China, Portugal, and the Netherlands. In existence since 1818, the Company supplies tabletop products to retail, foodservice and business-to-business customers in over 100 countries. Libbey’s global brand portfolio, in addition to its namesake brand, includes Libbey Signature, Master’s Reserve, Crisa, Royal Leerdam, World Tableware, Syracuse China, and Crisal Glass.
The Company reported a net loss of $69.02 million for the year ended Dec. 31, 2019, compared to a net loss of $7.96 million for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had $706.69 million in total assets, $732.47 million in total liabilities, and a total shareholders’ deficit of $25.79 million.
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As reported by the TCR on April 21, 2020, S&P Global Ratings lowered its issuer credit rating on U.S.-based Libbey Inc. to ‘SD’ (selective default) from ‘CCC’. “We are lowering our issuer credit rating on Libbey to ‘SD’ and the senior secured rating to ‘D’, because the company deferred a mandatory excess cash flow sweep payment on its term loan B on April 9, 2020,” S&P said.