ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT OnApril 27, 2020 ,Briggs & Stratton Corporation (the "Company") andBriggs & Stratton AG ("B&S AG ") entered into Amendment No. 4 to Revolving Credit Agreement (the "Amendment No. 4") among theCompany, B &S AG, the lenders party thereto andJPMorgan Chase Bank, N.A ., as administrative agent (the "Agent"). The Amendment No. 4 amends the Revolving Credit Agreement, dated as ofSeptember 27, 2019 , among theCompany, B &S AG, the other subsidiary borrowers from time to time party thereto, the lenders and issuing banks from time to time party thereto and the Agent (such agreement, as amended by Amendment No. 1 to Revolving Credit Agreement dated as ofNovember 15, 2019 , Amendment No. 2 to Revolving Credit Agreement dated as ofJanuary 29, 2020 , and Amendment No. 3 to Revolving Credit Agreement dated as ofApril 21, 2020 , the "Existing Credit Agreement", and the Existing Credit Agreement as amended by the Amendment No. 4, the "Credit Agreement"). The Amendment No. 4 amends certain provisions of the Existing Credit Agreement to, among other things, (a) during the period commencing on the effective date of the Amendment No. 4 and ending onJuly 26, 2020 , (i) suspend the requirement that the Company maintain a consolidated fixed charge coverage ratio of no less than 1.0 to 1.0 whenever its borrowing availability under the revolving credit facility is less than$50 million and (ii) instead require the Company and its subsidiaries to maintain at least$12.5 million of borrowing availability under the revolving credit facility; (b) increase the amount that the Company and its subsidiaries may borrow outside of the Credit Agreement to an amount equal to the greater of$300 million and 22.5% of the Company's consolidated total assets (this amount is in addition to amounts borrowed pursuant to specific exceptions under the Credit Agreement); (c) reduce the maximum aggregate amount available for borrowing or letters of credit under the revolving credit facility that the Existing Credit Agreement contemplated by$25 million to$600 million ; (d) increase the applicable margins paid to lenders as part of the variable interest rates for both LIBOR and base rate borrowings by 100 basis points in each case; (e) incorporate a LIBOR floor equal to 1.0%; (f) add certain events of default, including with respect to raising capital; and (g) impose certain financial, operational and liquidity maintenance and reporting obligations on the Company.
The foregoing description of the Amendment No. 4 does not purport to be a complete description and is qualified in its entirety by reference to the Amendment No. 4 filed herewith as Exhibit 10.2 and incorporated herein by reference.
On
ITEM 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT.
The information under Item 1.01 is incorporated herein by reference.
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ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits. The exhibits listed in the Exhibit Index below are filed as part of this report. Exhibit No. Description 10.1 Amendment No. 3 to Revolving Credit Agreement, dated as ofApril 21, 2020 , among Briggs & Stratton
the lenders party thereto andJPMorgan Chase Bank, N.A ., as administrative agent. 10.2 Amendment No. 4 to Revolving Credit Agreement, dated as ofApril 27, 2020 , among Briggs & Stratton
the lenders party thereto andJPMorgan Chase Bank, N.A ., as administrative agent. 104.1 The cover page from this Current Report on Form 8-K, formatted as Inline XBRL 3
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