Item 1.01 Entry into a Material Definitive Agreement.
On the Closing Date, in connection with the completion of the Merger, Echo
entered into a new
The First Lien Credit Agreement includes two categories of borrowings: (a) the
initial term loans in an aggregate principal amount of
Unless the Company elects otherwise under the Credit Agreements, interest on borrowings under (I) the First Lien Credit Agreement are based on the highest of (a) the adjusted LIBO rate plus 3.75% or (b) the alternate base rate plus 2.75% and (II) the Second Lien Credit Agreement are based on the highest of (a) the adjusted LIBO rate plus 7.25% or (b) the alternate base rate plus 6.25%. In each case, borrowings under the Credit Agreements are subject to step-downs ranging from 0.25% to 0.50% depending on the Company's First Lien net leverage ratio or secured net leverage ratio, as set forth in the applicable Credit Agreement.
The Credit Agreements contain financial covenants and other covenants that, among other things, restrict the ability of the Company and its subsidiaries, without the approval of the lenders, to engage in certain mergers, consolidations, asset sales, investments, transactions or to incur liens or indebtedness, as set forth in the applicable Credit Agreement.
Item 2.01 Completion of Acquisition or Disposition of Assets.
Completion of the Merger
On the Closing Date, Echo completed its previously announced Merger with Parent and Merger Sub. As provided in the Merger Agreement, Merger Sub was merged with and into Echo, with Echo surviving the Merger as a wholly owned subsidiary of Parent.
As a result of the Merger, each share of Echo common stock, par value
At the Effective Time, each outstanding share of restricted stock (a "Restricted Share"), was cancelled and converted into a right to receive an amount in cash, without interest and less applicable taxes, equal to (1) the total number of Restricted Shares prior to the Effective Time multiplied by (2) the Per Share Price.
At the Effective Time, each outstanding performance share, whether vested or unvested, vested either (1) as if the target level of performance had been achieved as of the Effective Time or (2) if specifically provided under an individual employment agreement or award agreement in the event of a "change of control," at the greater of target or actual performance through the Closing Date. All vested performance shares were canceled and converted into the right to receive (without interest) an amount in cash equal to the product of (1) the total number of such vested performance shares multiplied by (2) the per share merger consideration less applicable taxes.
At the Effective Time, each outstanding restricted stock unit ("RSUs") outstanding immediately prior to the Effective Time, whether vested or unvested, was canceled and converted into the right to receive an amount in cash, without interest, equal to the (1) the Per Share Price multiplied by (2) the total number of shares of Echo common stock subject to such RSU.
The foregoing summary description of the Merger Agreement does not purport to be
complete and is qualified in its entirety by reference to the terms of the
Merger Agreement, a copy of which was filed as Exhibit 2.1 to Echo's Current
Report on Form 8-K filed by Echo with the
Repayment of Credit Facility
In connection with the completion of the Merger, on the Closing Date, Echo
repaid in full and terminated its Credit Agreement, dated as of
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On the Closing Date, Echo notified the NASDAQ Global Select Market (the "NASDAQ") of the effectiveness of the Merger. As a result, trading in shares of Echo common stock on the NASDAQ have been suspended and the NASDAQ has filed with the Commission an application on Form 25 to remove shares of Echo common stock from listing on the NASDAQ. Echo intends to file a certification on Form 15 requesting that its reporting obligations under Section 13 and 15(d) of the Exchange Act be terminated.
Item 3.03 Material Modification to the Rights of Security Holders.
The information set forth in the Introductory Note and under Items 2.01 and 3.01 of this Current Report on Form 8-K is incorporated herein by reference.
Item 5.01 Changes in Control of Registrant.
Upon the closing of the Merger on the Closing Date, a change in control of Echo occurred, and Echo became a wholly-owned subsidiary of Parent, as described in Item 2.01 of this Current Report on Form 8-K, which Item 2.01 is incorporated herein by reference.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
In connection with the Merger, each of
The officers of Echo immediately prior to the Effective Time continued as officers of Echo, the surviving corporation, immediately following the Effective Time and are the officers of Echo.
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
At the Effective Time, pursuant to the Merger Agreement, the amended and restated certificate of incorporation of Echo in effect immediately prior to the Effective Time was amended and restated in its entirety and is the amended restated certificate of incorporation of Echo, the surviving corporation, as set forth in Exhibit 3.1 and is incorporated by reference in this Item 5.03. In addition, at the Effective Time, the by-laws of Echo in effect immediately prior to the Effective Time became the by-laws of Echo, the surviving corporation, as set forth in Exhibits 3.2 and 3.3 and are incorporated by reference in this Item 5.03.
Item 8.01
On the Closing Date, Echo issued a press release announcing the completion of the Merger, a copy of which is attached hereto as Exhibits 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are included with this report: Exhibit Description No. 2.1 Agreement and Plan of Merger, dated as ofSeptember 9, 2021 , by and among Echo, Parent and Merger Sub (incorporated by reference to Exhibit 2.1 to Echo's Current Report on Form 8-K filed with the Commission onSeptember 10, 2021 )* 3.1 Amended and Restated Certificate of Incorporation 3.2 Amended and Restated By-laws (incorporated by reference to Exhibit 3.2 to Echo's Annual Report on Form 10-K filed with the Commission onFebruary 26, 2021 ) 3.3 Amendment to the Company's Amended and Restated By-laws (incorporated by reference to Exhibit 3.3 to Echo's Annual Report on Form 10-K filed with the Commission onFebruary 26, 2021 ) 99.1 Press Release dated as ofNovember 23, 2021 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the Commission upon request.
© Edgar Online, source