Item 1.01 Entry into a Material Definitive Agreement.
On
The Amendment increases the maximum aggregate principal amount of revolving
loans ("Revolving Loans") under the Credit Agreement from
The Amendment reduced the rate of maximum interest rate margin capable of being
paid on Revolving Loans under the Credit Agreement by 0.50%. Specifically,
London Interbank Offered Rate (LIBOR) loans borrowed under the Credit Agreement
will bear interest at a per annum rate equal to the applicable LIBOR rate, plus
a margin ranging from 1.25% to 1.75%, based on the Company's Total Leverage
Ratio (as defined in the Credit Agreement). Loans borrowed under the Credit
Agreement that are not LIBOR rate loans bear interest at a per annum rate equal
to (i) the greatest of (A) the Federal Funds Rate plus 0.50%, (B) the one month
LIBOR rate plus 1.00% per annum, and (C) the rate of interest announced, from
time to time, by
The Amendment also modified the Total Leverage Ratio the Company is required to maintain under the Credit Agreement by decreasing it from 3.25 to 1.00 to 2.75 to 1.00.
The Amendment also modified certain tests the Company is required to meet in
order to pay dividends, repurchase stock and make other restricted payments. In
order to make such payments which are permitted subject to certain customary
conditions set forth in the Credit Agreement, including compliance with a fixed
charge coverage ratio (from which the Company may exclude up to
A copy of the Amendment is filed as Exhibit 10.1 hereto and is incorporated herein by reference. The above description of the Amendment contained herein is qualified in its entirety by the full text of such exhibit.
Item 8.01 Other Events.
On
Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description 10.1 Sixth Amendment to Credit Agreement, datedDecember 17, 2019 , amongARC Document Solutions, LLC ,Wells Fargo Bank, National Association , as administrative agent, and the financial institutions party thereto as lenders. 99.1ARC Document Solutions, Inc. Press Release datedDecember 19, 2019 .
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