Item 1.01. Entry into a Material Definitive Agreement
Sixth Amendment and Reaffirmation Agreement
On
· The following paragraphs were appended to Section 2.6 of the Credit Agreement:
"By no later than
By no later than
· Section 7.1 of the Credit Agreement was deleted and replaced with the following
new Section 7.1:
"Section 7.1. Fixed Charge Coverage Ratio. Borrower and its Subsidiaries shall
maintain a minimum Fixed Charge Coverage Ratio of 1.25 to 1.00, to be tested
quarterly as of the last day of each quarter beginning with the quarter ending
· Section 7.2 of the Credit Agreement was deleted and replaced with the following
new Section 7.2:
"Section 7.2. Leverage Ratio. Borrower and its Subsidiaries shall not exceed a
maximum Leverage Ratio, to be tested quarterly as of the last day of each
quarter beginning with the quarter ending
· The following new Section 7.4 was added to the Credit Agreement:
"Section 7.4. Minimum Consolidated Adjusted EBITDA. Borrower and its
Subsidiaries shall maintain a minimum Consolidated Adjusted EBITDA, to be tested
as of
· The following new Section 7.5 was added to the Credit Agreement:
"Section 7.5. Minimum
· Section 8.3 of the Credit Agreement was deleted and replaced with the
following:
"Section 8.3. Cash Position Reporting. On the fifteenth (15th) and the last
day of each calendar month, bank account statements of Borrower and its
Subsidiaries or other information required by Bank in order to determine the
aggregate dollar amount of
· Finally, a Section 10.22 was added to the Credit Agreement,which permits the
Borrower (at its option) to refinance any outstanding debt under the Credit Agreement on or afterJune 30, 2020 (provided that certain requirements have been satisfied) on the following terms: (i) principal payments on the Delayed Draw Term Loans shall be made in accordance with up to a five (5) year amortization schedule, (ii) Borrower shall pay Bank seventy five percent (75%) of Excess Cash Flow for any fiscal year, and (iii) the Termination Date for the Term Loan Facility shall be the earlier of (y)May 11, 2023 or (z) the date the Term Loan Facility is terminated pursuant to Section 2.5 or Section 9.2 of this Agreement; notwithstanding the foregoing, any refinance of the Term Loan Facility shall be subject to terms and conditions satisfactory to Bank. "Excess Cash Flow" means with respect to the Borrower and its Subsidiaries on a consolidated basis, for any applicable period of determination, in each case, determined in accordance with GAAP, (a) the sum of, without duplication (i) Consolidated Net Income, (ii) interest expense, (iii) any provision for income taxes deducted in the calculation of Consolidated Net Income, and (iv) depreciation expense and amortization expense, minus (b) the sum of, without duplication (i) the aggregate amount of income taxes paid in cash, (ii) cash interest expense deducted in determining Consolidated Net Income, (iii) the aggregate amount of permanent principal payments of Indebtedness, including, without limitation, permanent repayments of the principal component of Capital Lease Obligations, (iv) the aggregate amount of allUnfinanced Capital Expenditures, (v) any other Distribution paid in cash to the extent permitted under this Agreement, (vi) any fees, costs, and expenses paid in connection with the Credit Documents, and (vii) any cash exchanges or performance losses relating to any hedge or swap agreements.
Each Borrower and Guarantor also made customary affirmations, ratifications,
representations and warranties typical for an amendment and reaffirmation of a
financing of this type. Finally, the effectiveness of the Sixth Amendment was
made contingent upon the Borrower's payment of
The foregoing description of the Sixth Amendment does not purport to be complete and is qualified in its entirety by reference to the Sixth Amendment, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
By: /s/Daniel Pugh Daniel Pugh Secretary, Chief Legal and Risk OfficerJanuary 8, 2020
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