Item 1.01. Entry into a Material Definitive Agreement.
Notes Offering
On
The Notes were issued under an indenture, dated as of
The Notes are unsecured senior obligations of the Company, and rank senior in
right of payment to all existing and future indebtedness that is, by its terms,
expressly subordinated in right of payment to the Notes and equally in right of
payment with all other unsecured senior indebtedness of the Company. The Notes
mature on
The Notes are not entitled to any sinking fund payments. The Company may redeem the Notes at any time in whole or from time to time in part in accordance with the provisions of the Indenture.
Upon the occurrence of a change of control repurchase event (defined and described more fully in the Supplemental Indenture to mean certain changes in control of the Company that result in ratings downgrades) with respect to the Notes, each holder of the Notes will have the right to require the Company to purchase that holder's Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the date of repurchase, unless the Company has exercised its option to redeem all the Notes.
In the case of an event of default arising from certain events of bankruptcy or insolvency with respect to the Company or certain of its majority-owned subsidiaries, all outstanding Notes will become due and payable immediately. If any other event of default specified in the Indenture occurs and is continuing, the Trustee or the holders of at least 25% in aggregate principal amount of the outstanding Notes may declare the principal of the Notes immediately due and payable.
The Indenture contains certain limitations on the ability of the Company and certain majority-owned subsidiaries to grant liens without equally securing the Notes, or to enter into certain sale and lease-back transactions. These covenants are subject to a number of important exceptions and limitations, as further provided in the Indenture, as applicable.
The foregoing description of the Notes, the Base Indenture and the Supplemental Indenture does not purport to be complete and is qualified in its entirety by reference to such documents.
Credit Agreement
On
The cost structure of the 364-Day Credit Agreement is based on the Company's current credit ratings. The applicable margin for Base Rate Advances (as defined in the 364-Day Credit Agreement) is 0.250%, the applicable margin for Eurodollar Rate Advances (as defined in the 364-Day Credit Agreement) is 1.250%, and the facility fee payable on a lender's revolving commitment is 0.250%.
Under the 364-Day Credit Agreement, the Company is subject to a leverage ratio,
among other customary covenants. The Company is required to maintain, as of the
end of each fiscal quarter a leverage ratio of not more than (i) 3.75 to 1.00 on
the last day of each fiscal quarter ending on or prior to
In addition, the 364-Day Credit Agreement contains other standard affirmative and negative covenants such as those which (subject to certain thresholds) limit the ability of the Company and its consolidated subsidiaries to, among other things, incur debt of its consolidated subsidiaries, incur liens, engage in mergers or consolidations, dispose of assets, make accounting changes, or enter into new lines of business not related to the Company's current lines of business or businesses incidental thereto. Events of default under the 364-Day Credit Agreement include, among other things, payment defaults,
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breaches of representations, warranties or covenants, defaults under material indebtedness, certain events of bankruptcy or insolvency, judgment defaults, certain defaults or events relating to employee benefit plans or a change in control of the Company. The events of default would permit the lenders to terminate commitments and accelerate the maturity of borrowings under the 364-Day Credit Agreement if not cured within applicable grace periods.
The leverage ratio and other covenants set forth in the 364-Day Credit Agreement
are identical to the covenants contained in the Company's existing
The foregoing description is qualified in its entirety by reference to the 364-Day Credit Agreement, attached hereto as Exhibit 10.1, which is incorporated herein by reference.
Item 2.03. Creation of Direct Financial Obligation.
The disclosure set forth in Item 1.01 above with respect to the Notes Offering and the 364-Day Credit Agreement is incorporated by reference into this Item 2.03.
Item 8.01. Other Events.
On
A copy of the opinion letter of
On
On
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit No. Description 1.1 Terms Agreement, dated as ofMarch 26, 2020 , between the Company andCitigroup Global Markets Inc. ,J.P. Morgan Securities LLC andMorgan Stanley & Co. LLC , as representatives of the several underwriters named in Schedule I thereto. 4.1 Senior Debt Indenture, dated as ofMarch 2, 2012 , between the Company andU.S. Bank National Association , as Trustee, (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed with theSEC onMarch 2, 2012 ). 4.2 Ninth Supplemental Indenture, dated as ofMarch 30, 2020 , between the Company andU.S. Bank National Association , as Trustee. 4.3 Form of Global Note representing 4.750% Senior Notes due 2030 (included as part of Exhibit 4.2). 5.1 Opinion ofWillkie Farr & Gallagher LLP . 10.1 364-Day Credit Agreement, dated as ofMarch 27, 2020 , by and among the Company, the initial lenders named therein,Citibank, N.A . ("Citibank"), as administrative agent,JPMorgan Chase Bank, N.A . ("JPMorgan"), as syndication agent,Bank of America, N.A . andMorgan Stanley Senior Funding, Inc. , as documentation agents, and Citibank and JPMorgan, as joint lead arrangers and joint book managers. 23.1 Consent ofWillkie Farr & Gallagher LLP (included as part of Exhibit 5.1). 99.1 Press Release, datedMarch 26, 2020 . 99.2 Press Release, datedMarch 30, 2020 . 104 Cover Page Interactive Data File. The cover page XBRL tags are embedded within the Inline XBRL document (included as Exhibit 101).
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