Item 1.01. Entry into a Material Definitive Agreement.
On
The Borrowers will be using borrowings under the new Senior Credit Facility (i) to fund future capital expenditures; (ii) to fund on-going working capital needs; and (iii) for other corporate purposes. Borrowings under the Senior Credit Facility will bear interest at a rate equal to an alternate base rate, the London Inter-Bank Offered Rate ("LIBOR") or a LIBOR successor rate index, plus, in each case, an applicable margin. The applicable margin will be based on a Fixed Cost Coverage Ratio ("FCCR") range. Interest on alternate base rate borrowings will be the alternate base rate as defined in the Senior Credit Facility plus an applicable margin ranging from 1.00% to 1.50%, based on the FCCR in the most recently reported period. Interest on LIBOR or LIBOR successor rate borrowings will be the LIBOR rate as defined in the Senior Credit Facility plus an applicable margin ranging from 2.00% to 2.50%, based on the FCCR in the most recently reported period. Additionally, the Borrowers will pay a 0.25% per annum facility fee on the unused portion of the Senior Credit Facility.
Subject to certain exceptions, borrowings under the Senior Credit Facility will
be secured by substantially all of the North American Loan Parties' assets. The
Senior Credit Facility will mature on
The Senior Credit Facility also contains financial covenants requiring the North
American Loan Parties to achieve a ratio of its EBITDA (with certain additional
adjustments) to the sum of scheduled cash principal payments on indebtedness for
borrowed money and interest payments on the advances under the Senior Credit
Facility (excluding from the calculation items related to the financial
performance of foreign subsidiaries not parties to the Credit Agreement) to be
not less than 1.10 to 1.00 if for any five consecutive days the undrawn
availability is less than
The Senior Credit Facility contains customary events of default. If an event of default occurs and is continuing, then PNC may terminate all commitments to extend further credit and declare all amounts outstanding under the Senior Credit Facility due and payable immediately. In addition, if any of the North American Loan Parties or certain of their subsidiaries become the subject of voluntary or involuntary proceedings under any bankruptcy, insolvency or similar law, then any outstanding obligations under the Senior Credit Facility will automatically become immediately due and payable. Loans outstanding under the Senior Credit Facility will bear interest at a rate of 2.00% per annum in excess of the otherwise applicable rate (i) while a bankruptcy event of default exists or (ii) upon the lenders' request, during the continuance of any other event of default.
The description of the Senior Credit Facility set forth above is qualified by reference to the Senior Credit Facility filed herewith as Exhibit 10.1 and incorporated herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information included in Item 1.01 above is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits. (d) Exhibits. The following exhibits are being filed herewith: Exhibit Number Description Second Amendment and Waiver to Revolving Credit and Security Agreement, datedSeptember 17, 2021 , among the North American Loan Parties, PNC and 10.1 the other parties thereto. Cover Page Interactive Data File (embedded within the Inline XBRL 104 document)
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