No, that "relaxation" of covenants is just a different way of saying the same old covenant waiver. And as usual it comes with a margin increase over Libor. Last year EXM paid down the loan in order to be compliant, and that reduced the margin to 1.25%.
>>Following our Nordea repayment on July 1, 2010 discussed under " — Loan Repayments" above, the related credit facility reverted to its original terms as of that date and the applicable margin for the interest period through December 31, 2010 decreased from 2.5% to 1.25% and remained at this level until the waiver period expired on January 2, 2011. We complied with all financial covenants, as applicable, after the end of the waiver period as of December 31, 2010. On January 2, 2011, the waiver period expired.<<
NOW, Due to the latest violation of loan covenants, they had to receive a "relaxation" of the covenants, and an increase over Libor margins up to 2.5%.
>>During July 2011, we entered into agreements to amend our Nordea Syndicated Facility, our Credit Suisse Facility and our DVB Facility in order to secure the appropriate covenant relaxation for each credit facility, in connection with the weaker charter market condition and the high volatility in asset values the market is currently experiencing, both of which impact our ability to comply with financial covenants under those credit facilities. The amendments are in effect from June 30, 2011 through and including December 31, 2012 and they mainly relate to relaxation of the leverage ratio, the interest cover ratio, total net debt to EBITDA ratio and vessels’ security value. The amendments were made against an increase of facility margins to 2.5% and minimum liquidity for the waiver period.<<