Legg Mason Inc. amended its unsecured credit agreement with Citibank NA, as administrative agent, and other banks for a third time.
The amendment lowered the aggregate amount of the lenders' commitment to make loans to Legg Mason to $500 million from $1 billion. The commitment may be increased by an aggregate amount of up to $500 million at Legg Mason's discretion, subject to the lenders' consent.
Legg Mason will take a noncash charge of $1.5 million for unamortized financing costs resulting from the reduced commitment.
Additionally, the amendment increased the maximum leverage ratio permitted under the credit agreement to no greater than 3.5:1 at any time during the period starting from Jan. 1 through and including March 31, 2018.