L-1 Identity Solutions, a provider of identity solutions and services, announced that the company has amended its credit agreement to extend the time period during which financial covenants modified on March 31 will apply. If on or prior to Sept. 30 the company enters into a definitive agreement to sell all or substantially all of its assets, the amended covenant ratios of a maximum consolidated leverage ratio of 3.85:1 and a minimum consolidated debt service coverage ratio of 1.65:1 will remain in place through March 30, 2011, including the next measurement period ending on Sept. 30, 2010. If a definitive agreement is not executed on or prior to Sept. 30, the pre-amendment covenant ratios will be in effect for the measurement period ending Sep. 30 and thereafter.
As previously announced the company is engaged with interested parties in connection with the strategic alternatives process and expects to execute a definitive agreement prior to Sept. 30. If the company does not execute a definitive agreement, it plans to pursue a refinancing or further amendment of its secured credit facility.