Item 1.01. Entry into a Material Definitive Agreement.
On
Pursuant to the Amendment, borrowings under the Credit Facility bear interest, at the Company's option, either at (i) LIBOR plus the applicable margin for LIBOR loans ranging from 0.875% to 1.250%, based on the Company's consolidated leverage ratio; or (ii) the greatest of (a) the Administrative Agent's prime rate in effect on such day, (b) the federal funds effective rate in effect on such day, plus 0.50% and (c) the applicable LIBOR for a one month interest period on such day, plus 1.00%, plus, in the case of each of clauses (a) through (c), an applicable margin ranging from 0.00% to 0.250%, based on the Company's consolidated leverage ratio. The Company is required to pay a quarterly undrawn fee ranging from 0.075% to 0.175% per annum on the unutilized portion of the Credit Facility, based on the Company's consolidated leverage ratio. The Company is also required to pay quarterly letter of credit usage fees ranging between 0.875% to 1.250% (based on the Company's consolidated leverage ratio) on the amount of the daily average outstanding letters of credit, and a quarterly fronting fee of 0.125% per annum on the undrawn and unexpired amount of each letter of credit. As amended, the Credit Facility continues to include customary covenants, representations and warranties and events of default.
The foregoing description of the Amendment is not complete and is qualified in its entirety by reference to the full terms and conditions of the Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
Certain of the Lenders under the Credit Facility and/or their affiliates have from time to time performed, and may in the future perform, various commercial banking, investment banking and other financial advisory services for the Company and/or its subsidiaries in the ordinary course of business, for which they have received or will receive customary fees and commissions.
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 under Item 1.01 above is hereby incorporated by reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
10.1 Amendment No.1 to Credit Agreement, dated as ofAugust 24, 2021 , by and amongMSC Industrial Direct Co., Inc. , the subsidiary guarantors party thereto, the lenders and issuing lenders party thereto, andJPMorgan Chase Bank, N.A ., as administrative agent. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). ? -2-
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