ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On
Borrowings under the Credit Facility will bear interest, at the Company's
option, at either (a) SOFR plus an applicable margin or (b) a base rate defined
as the highest of (i) the Administrative Agent's "prime rate", (ii) the higher
of the federal funds rate or the overnight bank funding rate set by the
The Credit Agreement includes a financial covenant to maintain a funded debt ratio of not greater than 3.75 to 1.00. For purposes of compliance with the funded debt ratio, domestic cash and cash equivalents are permitted to be netted from the Company's obligations.
The Credit Agreement also contains customary covenants that, among other things,
limit or restrict the ability of the Company and its subsidiaries to incur
additional indebtedness and liens; engage in mergers, acquisitions and
dispositions; and engage in transactions with affiliates. In addition, the
Credit Agreement restricts certain payments, including dividends and share
buybacks, in an amount over
All borrowings under the Credit Agreement are permitted to be voluntarily prepaid by the Company, provided that the Company for SOFR loans must compensate the Lenders for, and hold the Lenders harmless from, any loss, cost or expense incurred by it as a result of such prepayment. The Lenders may accelerate any repayment of the obligations incurred by the Company under the Credit Agreement only if an event of default occurs.
The description of the Credit Agreement is qualified in its entirety by the copy thereof which is attached as Exhibit 10.1 and incorporated herein by reference.
ITEM 1.02 TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT
On
ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT
The information disclosed under Item 1.01 is incorporated into this Item 2.03 by this reference.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits 10 .1 Credit Agreement dated July 12, 2022, among Columbia Sportswear Company, JPMorgan Chase Bank, National Association, as the administrative agent for the lenders and as a lender, and the other lenders party thereto. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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