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Harris Restructures Credit Agreement
Harris Interactive has amended its credit agreement in a move which President and CEO Kimberly Till says will provide it with 'the financial stability and flexibility needed' as the firm continues to implement its strategic plan.
Since joining last October, Till has implemented a series of restructuring initiatives - including making 16% of its US full-time workforce redundant - in a bid to make $10m in cost savings; earlier this week it also cut Non-Employee Director compensation.
As part of its revamped credit agreement, prior covenant defaults have been permanently waived. Credit facilities now consist of the company's outstanding debt and a revolving line of credit, with borrowings under the latter subject to a limit of $5m. The principal amount outstanding under the term loan - $24.2m - remains unchanged under the amended terms.
'We have strengthened our financial position by completing this amendment to our credit agreement, which I am especially pleased we were able to do in this challenging credit environment,' stated Till.
At the end of December, the company reclassified its long-term debt of $26m to current liabilities until such time as an amended and/or new credit facility was established. As a result of today's amendment, the non-current portion of total long-term debt outstanding at March 31, 2009 has been reclassified to noncurrent liabilities.
Web site: www.harrisinteractive.com .
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