Article 1.01. The conclusion of an important definitive agreement.
The Borrowers will use borrowings under the new Senior Credit Facility (i) to finance future capital expenditures; (ii) to finance current working capital requirements; and (iii) for other business purposes. Borrowings under the Senior Credit Facility will bear interest at a rate equal to another prime rate, the London Inter-Bank Offered Rate (“LIBOR”) or a successor rate index LIBOR, plus, in each case. , an applicable margin. The applicable margin will be based on a fixed cost coverage rate range (“FCCR”). The interest on the loans at the alternative base rate will be the alternative base rate as defined in the Senior Credit Facility plus an applicable margin ranging from 1.00% to 1.50%, based on the FCCR for the period. the most recent. Interest on borrowings at LIBOR or at the successor rate to LIBOR 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 of the most recent period. In addition, the Borrowers will pay a facility fee of 0.25% per annum on the unused portion of the Senior Credit Facility.
Subject to certain exceptions, the borrowings under the Senior Credit Facility will be secured by substantially all of the assets of the North American creditors. The Senior Credit Facility will mature on
The senior credit facility also contains financial covenants requiring parties to the North American loan to achieve a ratio of their EBITDA (with certain additional adjustments) to the sum of expected cash principal payments on debt for borrowed money and interest payments on advances under the senior credit facility. Facility (excluding the elements of calculation linked to the financial performance of foreign subsidiaries not party to the credit agreement) of at least 1.10 to 1.00 if, for five consecutive days, the unused availability is less To
The Senior Credit Facility contains typical events of default. If an Event of Default occurs and continues, then PNC may terminate all covenants to extend additional credit and report all amounts due under the Senior Credit Facility immediately due. In addition, if any of the parties to the North American loan or some of their subsidiaries are the subject of voluntary or involuntary proceedings under bankruptcy, insolvency or similar law, then all 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 addition to the rate otherwise applicable (i) while a bankruptcy event exists or (ii) on demand. lenders, for the duration 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 attached as Exhibit 10.1 and incorporated herein by reference.
Article 2.03. Creation of a direct financial obligation or obligation under an off-balance sheet arrangement of a registrant.
The information included in section 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, dated
September 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)
© Edgar online, source