Item 1.01. Entry into a Material Definitive Agreement.
On
The interest rate payable with respect to the Amended Long-Term Facility reflect a decrease of 0.125% in the interest rate margin from the Company's prior credit facility, and will be initially, based on the Company's current debt rating, Term SOFR (secured overnight financing rate) + 1.00% interest rate margin per annum (with a 0.10% SOFR spread adjustment) or the Alternate Base Rate + 0.00% per annum, at the Company's election.
The Amended Long-Term Facility contains customary covenants and warranties, such
as, among other things, a rolling four quarter interest coverage ratio required
to be greater than or equal to 3.0 as of the end of each fiscal quarter. The
Amended Long-Term Facility removes the second financial covenant, a
debt-to-capitalization ratio, that was in the Company's prior credit agreement.
The Amended Long-Term Facility also includes limitations on the Company's
ability to (or to permit any subsidiaries to), subject to various exceptions and
limitations: (i) merge with other companies; (ii) create liens on its property;
and (iii) incur debt at the subsidiary level. Many of the lenders have in the
past performed, and may in the future from time to time perform, investment
banking, financial advisory, lending and/or commercial banking services, or
other services for
The description of the Amended Long-Term Facility in this Current Report on Form
8-K is qualified in its entirety by reference to the complete text of the
Amended Long-Term Facility, a copy of which will be filed as an exhibit to the
Company's quarterly report on Form 10-Q for the quarter ending
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Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off Balance Sheet Arrangement of a Registrant.
The information regarding the Company's entry into the Amended Long-Term Facility provided under Item 1.01 above is hereby incorporated by reference.
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in addition to following our press releases,
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