Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
As previously disclosed, SiteOne Landscape Supply Holding, LLC and SiteOne
Landscape Supply, LLC, each an indirect wholly-owned subsidiary of SiteOne
Landscape Supply, Inc. (the "Company"), are parties to a credit agreement dated
December 23, 2013(as amended by a First Amendment dated June 13, 2014, a Second
Amendment dated January 26, 2015, a Third Amendment dated February 13, 2015, a
Fourth Amendment dated October 20, 2015, an Omnibus Amendment dated May 24,
2017, and a Sixth Amendment dated February 1, 2019, the "ABL Credit Agreement"),
providing for an asset-based credit facility in the amount of up to $375.0
million, subject to availability under a borrowing base, with UBS AG, Stamford
Branch, as administrative agent and collateral agent, and the other financial
institutions and lenders from time to time party thereto (the "ABL Facility").
The material terms of the ABL Credit Agreement and ABL Facility are disclosed in
the Company's Annual Report on Form 10-K for the year ended December 29, 2019
and are incorporated by reference herein. As of December 29, 2019, the
outstanding balance on the ABL Facility was approximately $92.8 million.
On April 1, 2020, the Company borrowed approximately $100 million under the ABL
Facility, resulting in approximately $319 million outstanding and approximately
$46 million in available capacity under the ABL Facility and approximately $117
million cash on hand. The Company elected to borrow such amount as a
precautionary measure in order to increase its cash position and preserve
financial flexibility in light of current uncertainty in the global markets
resulting from the COVID-19 pandemic. The draw-down proceeds will be held on the
Company's balance sheet. The Company does not currently have plans to deploy
these new funds other than seasonal investments in working capital. Borrowings
under the ABL Facility are scheduled to mature on February 1, 2024.
Item 7.01. Regulation FD Disclosure.
On April 1, 2020, the Company issued a press release announcing the
approximately $100 million borrowing under the ABL Facility and other actions
the Company is taking to increase its financial flexibility amid the COVID-19
pandemic. A copy of the press release is furnished herewith as Exhibit 99.1 and
incorporated in this Item 7.01 by reference.
The information in this Item 7.01, including Exhibit 99.1, shall not be deemed
to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), or otherwise subject to the liabilities of such
section, nor shall such information be deemed incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the Exchange Act, except
as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
Exhibit No. Description
99.1 Press Release dated April 1, 2020
Cover Page Interactive Data File (embedded within the Inline XBRL
© Edgar Online, source Glimpses