Item 1.01. Entry into a Material Definitive Agreement.
On
The New Revolving Credit Agreement is a
Loans under the New Revolving Credit Agreement bear interest at the LIBOR rate or the base rate plus the applicable margin described below. The agreement contains customary LIBOR successor rate provisions. The applicable margin is determined based upon the public ratings of PCA's senior long-term unsecured debt or PCA's gross leverage ratio and ranges from (a) in the case of LIBOR loans, 0.900% to 1.500% and (b) in the case of base rate loans, 0.000% to 0.500% for revolving loans.
The New Revolving Credit Agreement contains customary affirmative and negative covenants, including limitations on liens, mergers and consolidations, sales of assets and subsidiary indebtedness. The New Revolving Credit Agreement has two financial covenants, a maximum leverage ratio and a minimum interest coverage ratio, each calculated on a consolidated basis.
PCA may prepay loans under the New Revolving Credit Agreement at any time without premium or penalty.
Item 9.01. Financial Statements and Exhibits.
(D) Exhibits
10.1 Credit Agreement, datedJune 8, 2021 betweenPackaging Corporation of America and the lenders and agents named therein 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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