CREE, INC. : Entry into a Material Definitive Agreement, Financial Statements and Exhibits (form 8-K)

Item 1.01 Entry into a Material Definitive Agreement.

On December 16, 2019, Cree, Inc. (the "Company") entered into a Fourth Amendment (the "Fourth Amendment") to its Credit Agreement, dated as of January 9, 2015, with Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto, as amended by the First Amendment dated as of September 10, 2015, the Consent dated as of July 13, 2016, the Second Amendment dated as of November 13, 2017, the Third Amendment dated as of August 21, 2018, and the Consent dated as of March 14, 2019 (the "Original Credit Agreement").

The Fourth Amendment amends the Original Credit Agreement to reduce the aggregate amount of the revolving line of credit available under the Original Credit Agreement from $500 million to $250 million, reduce the amount of swingline loans available under the revolving line of credit from $75 million to $30 million, and reduce the amount of letters of credit available under the revolving line of credit from $10 million to $5 million. The Fourth Amendment also amends the Original Credit Agreement to replace the financial covenant that previously required the Company to maintain a ratio of consolidated total indebtedness to EBITDA equal to or less than 4.50 to 1.00 with a new financial covenant that requires the Company to maintain a ratio of consolidated total indebtedness, net of up to $500 million of cash, cash equivalents, and marketable securities to EBITDA, equal to or less than 4.50 to 1.00. In addition, the Fourth Amendment amends the Original Credit Agreement to provide for the replacement of the eurocurrency rate and/or daily LIBOR rate with an alternative interest rate upon the phasing out of the eurocurrency rate and/or daily LIBOR rate.

The foregoing description of the Fourth Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Fourth Amendment, which is attached hereto as Exhibit 10.1 and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d)  Exhibits

       Exhibit No.         Description of Exhibit

       10.1                  Fourth Amendment to the Credit Agreement, dated as
                           of December 16, 2019, by and among Cree, Inc., Wells
                           Fargo Bank, National Association, as administrative
                           agent, and the other lenders party thereto
       104                 Cover Page Interactive Data File (embedded within the
                           Inline XBRL document)

--------------------------------------------------------------------------------

© Edgar Online, source Glimpses