XXL ASA, the highly leveraged Norwegian-based sports retailer, says it has agreed on a new covenant with its bank consortium for its third-quarter results. Last February, it had renegotiated covenants for the first and second quarters of this year. The covenant for the third quarter sets a debt/Ebitda target of 4.25 times, but the ratio should decline to 3.5 times going forward. Separately, XXL has agreed to sell 2.23 percent of its ordinary shares, held in treasury, to two funds of Altor Invest at a unit price of 25 Norwegian kroner, boosting its own liquidity by NOK 77.4 million (€7.9m-$8.9m). In addition, Altor has acquired 7.1 million shares from existing XXL shareholders. As it now owns a fully diluted stake of 12.29 percent in the company, it has requested representation in XXL's board of directors. Altor knows the sporting goods sector well. It acquired Helly Hansen in 2006, and in 2013, after selling the company, it took a controlling stake in the Rossignol Group.

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