Section 1.01 Entering into a Material Definitive Agreement.
Availability, interest and maturity. The initial maximum availability under the ABL Credit Facility is
Proceeds from the ABL Credit Facility will be used to repay amounts due under the existing credit agreement and for working capital, capital expenditures and other general corporate purposes for the Company and its subsidiaries. .
The ABL Credit Agreement also allows the Company to increase availability under the ABL Credit Facility or add term loans on a “last out” basis up to a maximum additional amount equal at
Guarantees and security. The Company’s obligations under the ABL Credit Agreement will be guaranteed by certain of its
Pacts. The ABL Credit Agreement contains customary covenants restricting the activities of the company, as well as those of its subsidiaries, including limitations on the ability to sell assets, engage in mergers or other fundamental changes, enter into capital leases or certain leases that are not in the ordinary course of business, enter into transactions involving related parties or derivatives, incur or prepay debts, grant privileges or negative pledges over its assets, making loans or other investments, paying dividends or repurchasing shares or other securities, securing obligations of third parties, engaging in sale-leaseback sales and making changes to its structure of business. There are exceptions to these commitments, and some commitments only apply when unused availability falls below specified thresholds. In addition, the ABL credit agreement includes, as a financial covenant, a spring-loaded fixed charge coverage ratio that occurs when availability falls below a specified threshold.
Event of default. The ABL Credit Agreement contains customary events of default, including defaults in payment, breach of representations and warranties, breach of covenants, breach of other obligations under the credit or related documents, defaults on other material debts, bankruptcy, insolvency and inability to pay debts when due, material judgments, terminations of pension plans or specified underfunding, change of control and failure of certain provisions of any collateral or security document supporting the Company’s credit facility to be fully effective. The cross-default provisions of the ABL Credit Agreement apply if a default occurs on another indebtedness of the company or guarantors in excess of a specified amount and the applicable grace period in respect of the indebtedness has expired, so that the lenders or trustee for indebtedness in default have the right to accelerate. If a fault event
occurs under the ABL Credit Facility, subject to any applicable grace period, the lenders may terminate their covenants, declare all borrowings under the ABL Credit Facility immediately payable and seize the collateral.
The above summary of the material terms of the ABL Credit Facility does not purport to be complete and is qualified in its entirety by reference to the ABL Credit Agreement, a copy of which is filed as Schedule 10.1 hereto and incorporated by reference herein.
Item 2.03 Creation of a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth above in Section 1.01 is incorporated by reference in this Section 2.03.
Item 9.01 Financial statements and supporting documents.
(d) Exhibits. Exhibit No. Exhibit Description 10.1 * Fourth Amended and Restated Revolving Credit Agreement dated as of
July 13, 2022104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Certain appendices and exhibits have been omitted in accordance with SK Rule 601(a)(5).
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