Item 1.01. Entry into a Material Definitive Agreement
21, 2018 with an additional one-year extension at the Company's option, subject to customary conditions. Borrowings under the Revolver will be priced at LIBOR plus 135 to 200 basis points, depending on the Company's leverage ratio, with an initial applicable margin of 135 basis points. The Revolver replaces the Company's existing
$85.0 millionrevolving credit facility and may be increased to an aggregate of $250 millionat the Company's election, subject to certain terms and conditions.
July 21, 2021. Borrowings under the New Term Loan will be priced at LIBOR plus 165 to 225 basis points, depending on the Company's leverage ratio, with an initial applicable margin of 165 basis points. The Company has entered into interest rate swaps to fix LIBOR at 2.09% until maturity, implying an all-in interest rate of 3.74% at closing. Proceeds from the New Term Loan were used to repay borrowings under the Company's existing revolving credit facility. The New Term Loan may be increased to an aggregate of $75 millionat the Company's election, subject to certain terms and conditions.
· Additionally, conforming changes were made to certain terms and conditions of
the Company's existing
$35 millionterm loan facility (the "Existing Term Loan") as part of the Agreement. The maturity date remains September 29, 2020and pricing remains LIBOR plus 165 to 225 basis points, depending on the Company's leverage ratio, with a current applicable margin of 135 basis points and current all-in rate of 3.85% taking into account the effect of an interest rate swap agreement previously entered into by the Company. The Existing Term Loan may be increased to an aggregate of $70 millionat the Company's election, subject to certain terms and conditions.
The Agreement contains customary covenants, including financial covenants regarding debt levels, total liabilities, tangible net worth, fixed charge coverage, unencumbered properties, permitted investments, etc. The Company was in compliance with all covenant terms at closing.
The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the Agreement, a copy of which has been filed as Exhibit 10.1 to this report and is incorporated in this Item 1.01 by reference.
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 in Item 1.01 is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit Description 10.1 Revolving Credit Facility and Term Loan Agreement, dated
July 21, 2014, among Agree Limited Partnership, PNC Bank, National Associationand the other lenders party thereto. 99.1 Press release, dated July 21, 2014.