ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
The Second Amendment amends or modifies the Existing Senior Credit Agreement, in material part, as follows (capitalized terms having the meanings ascribed to them in the Second Amendment and in Section 1.01 of the Existing Senior Credit Agreement):
1) Permits the Company to borrow an additional
$7.5 millionon its Term Loan, thus increasing the outstanding balance under its Term Loan to $100.0 million. With these additional funds, the Company plans to pay down its Revolving Credit Facility. 2) Extends the Maturity Date of the Amended Senior Credit Facility from June 6, 2018to July 3, 2019. 3) Sets the Term A Facility principal payment to $1.25 millionper quarter through the Maturity Date, with all unpaid principal, accrued interest and fees payable on the Maturity Date. 4) Requires the Company to maintain a minimum Consolidated Fixed Charge Coverage Ratio of 1.35x. 5) Requires the Company to maintain a maximum Consolidated Leverage Ratio of 3.25x. 6) Amends the Applicable Rate for Eurodollar Rate loans from 1.75%-3.25% to 1.75%-2.75%, based on the Company's Consolidated Leverage Ratio. 7) Amends the Applicable Rate for Base Rate loans from 0.75%-2.25% to 0.75%-1.75%, based on the Company's Consolidated Leverage Ratio. 8) Eliminates the Company's $32.0 millionlimitation on annual capital expenditures. 9) Defines Total Liquidity to be the sum of Excess Revolving Availability plus unrestricted cash and Cash Equivalents. 10) Permits the Company to pay an unlimited amount of cash dividends or repurchase an unlimited amount of its common stock, so long as: a) Total Liquidity of at least $15.0 millionis maintained before and after the payment of any cash dividend or stock repurchase; and b) the Company maintains a Consolidated Leverage Ratio of 3.0x at that time.
This summary of the terms of the Second Amendment is qualified in its entirety by the text of the Second Amendment, a copy of which is attached to this Current Report on Form 8-K as Exhibit 10.1 and is incorporated herein by reference.
ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN
OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT
The disclosure contained in "Item 1.01 Entry into a Material Definitive Agreement" of this Current Report on Form 8-K is incorporated in this Item 2.03 by reference.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) EXHIBITS. 10.1 Second Amendment to the Amended and Restated Credit Agreement, dated as of
July 3, 2014