Item 1.01 Entry into a Material Definitive Agreement.
On
The Term Loan bears interest at a rate of 20% per annum (the "Interest Rate"), which will be due and payable in arrears on, initially, the later of (i) the fourth business day of the sixth month after the Closing Date or (ii) the effective date of the Plan (as defined below) and, for each month thereafter, the last business day of each month until the Maturity Date. All interest on the Term Loan, including additional interest at the default rate of 2% (the "Default Rate"), if applicable, will be added to the outstanding principal amount (the "Additional PIK Principal") of the Term Loan. Additional PIK Principal will be considered principal for all purposes and bear interest at the same rate of 20% per annum beginning on the date such interest is paid in kind and added to the principal amount of the Term Loan.
The Term Loan Agreement includes representations and warranties, affirmative and negative covenants and events of default customary for financings of this type and size. During the continuance of an event of default, the Company will pay interest on the Term Loan at the Interest Rate plus the Default Rate to the fullest extent permitted by applicable laws.
The proceeds of the Term Loan will be used to pay costs and expenses incurred in connection with the Chapter 11 Cases in a manner consistent with a budget and cash flow forecast acceptable to OpCo.
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 attached to this Current Report on Form 8-K as Exhibit 10.1 and is hereby incorporated by reference in this Item 1.01.
Item 1.03 Bankruptcy or Receivership.
On
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 above under Item 1.03 of this Current Report on Form 8-K is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
On
The information included in this Form 8-K under Item 7.01 and Exhibit 99.1 is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liabilities of that Section, unless the registrant specifically states that the information is to be considered "filed" under the Exchange Act or incorporates it by reference into a filing under the Exchange Act or the Securities Act of 1933, as amended.
Cautionary Statement Regarding Forward-Looking Statements
Statements included in this Current Report on Form 8-K may constitute forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. These statements often use words such as "anticipate," "believe," "intend," "plan," "projection," "forecast," "strategy," "position," "continue," "estimate," "expect," "may," "will," or the negative of those terms or other variations of them or comparable terminology. These statements often discuss plans, strategies, events or developments that we expect or anticipate will or may occur in the future and are based upon the beliefs and assumptions of our management and on the information currently available to them.
There can be no assurances that the Plan will receive the requisite votes in
favor of the Plan for purposes of confirmation pursuant to the Bankruptcy Code
or be approved by the
We continue to experience financial, business, operational and reputational
risks that could materially affect our present expectations and projections. For
additional information regarding known material factors that could cause our
actual results to differ from those contained in or implied by forward-looking
statements, please see the section entitled "Risk Factors" in
You are cautioned not to place undue reliance on forward-looking statements, which are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except as required by law.
Cautionary Note Regarding the Chapter 11 Cases
The Company cautions that trading in the Company's Existing Common Units during the pendency of the Chapter 11 Cases is highly speculative and poses substantial risks. Trading prices for the Company's Existing Common Units may bear little or no relationship to the actual recovery, if any, by holders of the Company's Existing Common Units in the Chapter 11 Cases. The Company expects that holders of the Company's Existing Common Units could experience a significant or complete loss on their investment, depending on the outcome of the Chapter 11 Cases.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Description 10.1 Term Loan Credit Agreement, datedJanuary 8, 2021 , betweenFerrellgas Partners, L.P. , as the borrower, andFerrellgas, L.P. , as the lender. 99.1 Press release datedJanuary 11, 2021
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