Item 1.01. Entry into a Material Definitive Agreement.
On
Pursuant to the terms of the Revolving Loan Agreement, effective
Piedmont is a joint venture between the Company and The Coca-Cola Company in
which the Company owns approximately 77.3%. The Company and
The Coca-Cola Company formed Piedmont in 1993 to distribute and market
nonalcoholic beverages primarily in portions of
Loans made to the Company by Piedmont under the Revolving Loan Agreement are
evidenced by the demand short-term promissory note (the "Note") provided by the
Company to Piedmont. The Revolving Loan Agreement terminates upon the first to
occur of the following: (i) demand for payment in full of the amounts borrowed
under the Revolving Loan Agreement is made by Piedmont, (ii) 30 days following
the date on which written notice of termination is provided by either the
Company or Piedmont to the other party or (iii)
The Company is required to repay the unpaid principal amounts borrowed under the Revolving Loan Agreement, all accrued and unpaid interest thereon and all fees due and payable by the Company upon the demand of Piedmont made at any time in its sole and absolute discretion, and the Company has the option to repay at its election, in whole or in part, at any time and from time to time prior to any demand by Piedmont, any amounts borrowed under the Revolving Loan Agreement. In the event Piedmont reduces the amount the Company is permitted to borrow under the Revolving Loan Agreement and, as a result, the outstanding borrowings under the Revolving Loan Agreement exceed the reduced amount the Company is permitted to borrow thereunder, upon its receipt of notice from Piedmont, the Company is required to immediately prepay such excess amount to Piedmont.
The unpaid principal amounts borrowed under the Revolving Loan Agreement will
bear interest (which will be adjusted monthly and computed on the basis of a
year consisting of 365 days) during each fiscal month of the Company and
Piedmont at a rate equal to the average rate for such month for commercial paper
with a 30-day maturity which has been rated Al by
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negotiation and execution of the Revolving Loan Agreement and the Note and in enforcing the Company's obligations thereunder.
As previously disclosed in the Company's filings with the
The foregoing descriptions of the Revolving Loan Agreement and the Note do not purport to be complete and are qualified in their entirety by reference to the full text of such documents, copies of which are filed as Exhibit 4.1 and Exhibit 4.2, respectively, hereto and incorporated herein by reference.
Item 1.02. Termination of a Material Definitive Agreement.
The disclosure required by this Item 1.02 and included in Item 1.01 above is incorporated by reference into this Item 1.02.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The disclosure required by this Item 2.03 and included in Item 1.01 above is incorporated by reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. Exhibit Incorporated by Reference or No. Description Filed/Furnished Herewith 4.1 First Amended and Restated Revolving Credit Filed herewith. Loan Agreement, dated as of October 7, 2020, by and between the Company and Piedmont Coca-Cola Bottling Partnership. 4.2 Form of Demand Short-Term Promissory Note Filed herewith. (included in Exhibit 4.1 above). 104 Cover Page Interactive Data File - the cover Filed herewith. page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
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