Forrester Research, Inc., and Certain of Its Subsidiaries Enters into First Amendment to Credit Agreement
December 22, 2021 at 04:12 pm EST
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On December 21, 2021, Forrester Research, Inc., a Delaware corporation, and certain of its subsidiaries entered into a first amendment to credit agreement (the Amendment), which amends Forresters existing credit agreement, dated as of January 3, 2019 (the Existing Credit Agreement and the Existing Credit Agreement as amended by the Amendment, the Amended Credit Agreement), by and among Forrester, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders from time to time party thereto. The Existing Credit Agreement was amended to, among other things, (a) increase the aggregate principal amount of revolving credit commitments from $75 million to $150 million and eliminate the existing term loan facility, (b) extend the scheduled maturity date of the revolving credit commitments to December of 2026, (c) reduce (i) the applicable margin with respect to revolving loans to, at Forresters option, (i) between 1.25% and 1.75% per annum for loans based on LIBOR and (ii) between 0.25% and 0.75% per annum for loans based on the applicable base rate, in each case, based on Forresters consolidated total leverage ratio, (d) reduce the commitment fee applicable to undrawn revolving credit commitments to between 0.30% and 0.20% per annum based on Forresters consolidated total leverage ratio, (e) replace the minimum fixed charge coverage ratio financial covenant under the Existing Credit Agreement with a minimum consolidated interest coverage ratio of 3.50:1.00 and (f) include a covenant limiting the amount of capital expenditures made by Forrester in each fiscal year, subject to exceptions for (i) up to $25 million annually with respect to its headquarters property and (ii) an additional general basket of $20 million annually. Forrester may voluntarily prepay revolving loans under the Amended Credit Agreement at any time and from time to time, without premium or penalty, other than customary breakage reimbursement requirements for LIBOR-based loans. No interim amortization payments are required to be made under the Amended Credit Agreement.
Forrester Research, Inc. is an independent research and advisory firm. The Company operates through three segments: Research, Consulting and Events. Research segment provides objective, independent and data-driven research insights utilizing both qualitative and quantitative data. Its primary subscription research services include Forrester Decisions, Forrester Research, and Sirius Decisions Research. Consulting segment includes consulting projects and advisory services. It delivers focused insights and recommendations to assist clients in developing and executing their technology and business strategies. Events segment hosts multiple events across North America, Europe, and the Asia-Pacific region. Its Events focused on business imperatives of significant interest to clients, including business-to-business marketing, sales and product leadership, customer experience, security and risk, new technology and innovation, and data strategies and insights.