GLG Partners, the US-listed asset manager, has reached an agreement with its senior lenders to amend its credit agreement. 

GLG Partners, the US-listed asset manager, has reached an agreement with its senior lenders to amend its credit agreement. 

The effectiveness of the amendment is conditioned upon GLG completing a capital raise of at least USD150m and GLG making a pro rata offer to purchase loans from its senior lenders which results in no less than USD150m in outstanding principal amount of loans being submitted for purchase.

Upon the amendment to the credit agreement becoming effective, GLG's financial covenants will be eliminated. 
 
'We are in an opportunity rich environment and very pleased with the amended credit agreement. We look forward to capitalizing on the additional financial flexibility we will gain by taking these steps with our lenders,' says Noam Gottesman, chairman and co-chief executive of GLG. 
 
In addition to the elimination of the financial covenants, as part of the negotiations with its lenders, certain other terms of the credit agreement will be amended. The interest rate will be reset to LIBOR + 2.50 per cent and GLG has agreed to additional limitations on the use of free cash.

GLG has also agreed to restrict the payment of dividends for a period of one year and thereafter unless the remaining principal loan amount with its senior lenders is less than USD200m. 

As of the submission deadline today, approximately USD285m in outstanding principal amount of loans have been submitted for purchase to the company at a price of USD600 per USD1,000 of outstanding principal amount.