Deerfield Capital Corp. entered into three supplemental indentures on July 31 with the holders of the trust preferred securities issued by each of Deerfield Capital Trust I, Deerfield Capital Trust II and Deerfield Capital Trust III.
The supplemental indentures amend the consolidated net worth agreements contained in the governing indentures of the three securities. They will now permanently decrease the net worth required by the agreements from $175 million to $50 million by an initial measurement date of September 30, 2012. These provisions will supersede the temporary waiver of the net worth covenants that were agreed upon by the holders of the securities in 2008.
The supplemental indentures also hold provisions which prevent the company from incurring additional indebtedness and declaring additional dividend or distributions on its capital stock for the duration of the securities, and as each supplemental indenture details.