Item 1.01 Entry into a Material Definitive Agreement.
On
The Credit Agreement is an amendment and restatement of that certain Credit
Agreement dated
Facilities.
· Revolving Credit Facility: A USD
credit facility made available to the US Borrower. The Revolving Credit Facility includes sublimits for letters of credit and swingline loans (the "Revolving Credit Facility").
· US Term Loan Facility: A USD
"US Term Loan") made available to the US Borrower (the "US Term Loan Facility").
· Canadian Term Loan Facility: A CAD
"Canadian Term Loan" and, together with the US Term Loan, the "Term Loans") made available to the Canadian Borrower (the "Canadian Term Loan Facility," and together with the US Term Loan Facility, the "Term Loan Facilities").
Proceeds of the Facilities were used at closing to repay and refinance the Borrowers' existing indebtedness under the Prior Credit Agreement and pay all interest, fees and expenses related thereto, and thereafter shall be used for working capital and general corporate purposes.
Accordion. The Credit Agreement allows for incremental term loans and
incremental revolving commitments in an amount not to exceed USD
Maturity and Repayment. Each of the Facilities terminates on
Installment Dates Principal AmountJanuary 1, 2022 throughOctober 1, 2022 1.250%January 1, 2023 throughOctober 1, 2024 1.875%January 1, 2025 throughJuly 1, 2026 2.500%
Guarantees. The US Term Loan and the obligations of the US Borrower under the Revolving Credit Facility are guaranteed by the Company and all of the US Borrower's current and future wholly owned domestic material subsidiaries (the "US Subsidiary Guarantors"), subject to certain exceptions. The Canadian Term Loan is guaranteed by the Company, the US Borrower, the US Subsidiary Guarantors and each of the wholly owned Canadian material subsidiaries of the Canadian Borrower, subject to certain exceptions.
Security. The US Term Loan and the obligations of the US Borrower under the Revolving Credit Facility are secured by a first lien on all of the assets of the Company, the US Borrower and the US Subsidiary Guarantors, including 100% of the capital stock of the US Subsidiary Guarantors and 65% of the capital stock of the first tier material foreign subsidiaries of the Company, the US Borrower and the US Subsidiary Guarantors, subject to certain exceptions. The Canadian Term Loan is secured by a first lien on all of the assets of the Company, the US Borrower, the US Subsidiary Guarantors, the Canadian Borrower and the material Canadian subsidiaries of the Canadian Borrower, including 100% of the capital stock of the Canadian Borrower's material Canadian subsidiaries.
Interest Rates and Fees. The US Borrower will have the option to pay interest on the US Term Loan and borrowings under the Revolving Credit Facility at a base rate, plus an applicable margin, or at a rate based on LIBOR plus an applicable margin. The Canadian Borrower will have the option to pay interest on the Canadian Term Loan at a prime rate, plus an applicable margin, or at a rate based on CDOR plus an applicable margin.
Under the applicable Facilities, the applicable margin for base rate loans and Canadian prime rate loans is 62.5 basis points and the applicable margin for LIBOR loans and CDOR loans is 162.5 basis points; provided that, following the completion of one full fiscal quarter after the closing date, the applicable margins will be determined based on a leverage-based performance grid.
In addition to paying interest on outstanding principal under the Revolving Credit Facility, the US Borrower is required to pay a commitment fee in respect of unutilized revolving commitments of 0.25% per annum, provided that, following the completion of one full fiscal quarter after the closing date, the commitment fee will be determined based on a leverage-based performance grid.
Voluntary Prepayment. The Borrowers will be able to voluntarily prepay the principal of the loans outstanding under each of the Facilities without penalty or premium (subject to breakage fees) at any time in whole or in part.
Mandatory Prepayment. Each Borrower is required to repay its respective Term Loan with certain asset sale and insurance proceeds and certain debt proceeds.
Financial Covenants. The Company is required, on a consolidated basis, to maintain certain financial covenant ratios. On the last day of any period of four fiscal quarters ending during a period set forth below, the Company must maintain a consolidated leverage ratio that does not exceed the ratios for such period set forth below (each of which ratios may be increased by 0.50:1.00 for each of the four fiscal quarters following certain acquisitions at the election of the US Borrower):
Consolidated Fiscal Quarter Ending Leverage Ratio
In addition, on the last day of any period of four fiscal quarters ending on or
after
Other Covenants. The Credit Agreement contains restrictive covenants (in each case, subject to exclusions) that limit, among other things, the ability of the Company and its subsidiaries (including the Borrowers) to:
· incur additional indebtedness; · grant liens; · make fundamental changes; · sell assets; · make restricted payments; · enter into sales and leasebacks; · make investments; · prepay certain indebtedness; · enter into transactions with affiliates; and · enter into restrictive agreements.
The covenants are subject to various baskets and materiality thresholds, with certain of the baskets to the restrictions on the repayment of subordinated or unsecured indebtedness, restricted payments and investments being available only . . .
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On
The information furnished pursuant to this Item 7.01 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description of Exhibit
10.1 Amended and Restated Credit Agreement dated
99.1 Press Release dated
Cover Page Interactive Data File (embedded within the Inline XBRL
104 document).
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