LP Announces Fourth Amendment to $100 Million Credit Agreement
Louisiana-Pacific Corporation (LP) (NYSE: LPX) announced today it has executed a fourth amendment, dated October 14, 2011, to its loan and security agreement, dated March 10, 2009, with the lenders party thereto and Bank of America, N.A., as administrative agent.
Among other changes, the Fourth Amendment: (1) extends the maturity of the revolving loan facility evidenced by the Revolving Loan Agreement from September 10, 2012 to October 14, 2016, (2) decreases the interest rate payable for certain types of loans, (3) permits LP to include in its borrowing base certain vendor managed inventory that was previously excluded, (4) increases LP's flexibility to incur and prepay certain debt and (5) provides that the Revolving Lenders' second priority liens on certain assets of LP and its subsidiaries that secure certain indebtedness of LP and its subsidiaries to other parties on a first priority basis will be automatically released in connection with the repayment of such other indebtedness.
