Item 1.01 Entry into a Material Definitive Agreement
Attached and incorporated herein by reference as Exhibit 99.1 is a copy of a
press release of the
The Facility is secured by a first lien on substantially all of the Company's
personal property except for assets related to projects subject to surety bonds
and assets held by certain unrestricted subsidiaries and captive insurance
entities, and a second lien on the Company's assets related to projects subject
to surety bonds. The Facility provides an increased line of credit to the
Company from
Net Leverage Ratio - The Facility requires that the ratio of (a) the Company's
Consolidated Total Indebtedness (as defined in the Facility), minus unrestricted
cash and cash equivalents up to
Interest Coverage Ratio - The Facility requires that the ratio of (a) its Consolidated EBITDA to (b) its Consolidated Interest Expense (as defined in the Facility) not be less than 3.00 to 1.00 as of the end of each fiscal quarter through the maturity date.
Other Restrictions - The Facility (a) permits unlimited acquisitions when Net Leverage is less than or equal to 3.25 to 1.00, (b) expands certain baskets for permitted indebtedness and liens, and (c) permits unlimited distributions, stock repurchases, and investments when Net Leverage is less than or equal to 2.75 to 1.00.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
The information set forth above in Item 1.01 is hereby incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits. Exhibit Description Number 10.1 Third Amended and Restated Credit Agreement dated as ofMay 25, 2022 by and amongComfort Systems USA, Inc. , as Borrower, the Lenders listed on the signature pages thereof, andWells Fargo Bank, National Association , as Agent for the Lenders. 99.1 Press Release ofComfort Systems USA, Inc. , dated DecemberMay 26, 2022 , announcing the Company's entry into an Amended and Restated Senior Credit Facility. 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). 2
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