Item 1.01. Entry into a Material Definitive Agreement..
OnJanuary 18, 2023 ,Nordson Corporation (the "Company") and its subsidiary,Nordson Engineering GmbH , ("Nordson GmbH " and together with the Company, the "Borrowers"), entered into a Term Loan Agreement (the "Term Loan Agreement") withPNC Bank, National Association , as Administrative Agent and Lender (the "Lender"), andPNC Capital Markets LLC , as Sole Lead Arranger and Sole Bookrunner. The Term Loan Agreement provides for a delayed draw term loan facility in the aggregate principal amount of$200.0 million (the "Term Loan Facility"). The Term Loan Agreement: •provides for a committed unsecured Term Loan Facility; •requires the Borrowers to borrow amounts pursuant to term loans, if at all, on or prior toApril 18, 2023 ; •matures onApril 30, 2024 ; •permits the Borrowers to borrow either inU.S. dollars or euros; •contains a number of representations and warranties that the Company believes are usual and customary for senior unsecured credit agreements; •contains a number of covenants that the Company believes are usual and customary for unsecured term loan agreements, including compliance with various financial ratios and tests, and certain covenants that restrict, among other things, the Company's and its subsidiaries' ability to: incur debt; incur liens; merge or consolidate with other companies or sell assets outside the ordinary course of business; and •contains customary events of default (subject to grace periods, as appropriate) including among others: nonpayment of principal, interest or fees; breach of the representations or warranties; breach of the financial, affirmative or negative covenants; default of payment on, or accelerations of, other material indebtedness; bankruptcy or insolvency; material judgments entered against the Company or any of its subsidiaries; certain specified events under the Employee Retirement Income Security Act of 1974, as amended; certain changes in control of the Company; and the invalidity or unenforceability of the Term Loan Agreement or other documents associated with the Term Loan Agreement. Borrowings under the Term Loan Facility bear interest at either a base rate or a SOFR rate, with respect to borrowings inU.S. dollars, or a eurocurrency rate, with respect to borrowings in euros, plus, in each case, an applicable margin. The applicable margin is based on the Company's Leverage Ratio (as defined in the Term Loan Agreement). The Borrowers plan to use the proceeds of any borrowings under the Term Loan Facility for general corporate purposes, which may include the repayment of indebtedness.
The foregoing description of the Term Loan Agreement does not purport to be complete and is qualified in its entirety by reference to the Term Loan Agreement, a copy of which is filed as Exhibit 4.1 to this Current Report on Form 8-K, respectively, and is incorporated herein by reference.
The Lender and/or its affiliates 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 from the Company and its subsidiaries (including in connection with the transactions described in this Form 8-K), for which they have received, and may in the future receive, customary compensation and expense reimbursement.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of the Registrant.
The description contained under Item 1.01 above is hereby incorporated by reference in its entirety into this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. 4.1 Term Loan Agreement, dated as ofJanuary 18, 2023 , by and amongNordson Corporation andNordson Engineering GmbH , as
Borrowers, and the Lenders party
thereto and PNC Bank, as Administrative Agent, and
Sole Lead Arranger and Sole Bookrunner 104 Cover Page Interactive Data File (embedded within
the inline XBRL document).
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