Item 1.01. Entry Into a Material Definitive Agreement.
On
Borrowings under the Credit Agreement bear interest at either the Alternate Base Rate (as defined in the Credit Agreement and hereinafter referred to as "ABR") or the LIBO Rate (as defined in the Credit Agreement). ABR borrowings (which are borrowings bearing interest at a rate determined by reference to the ABR) will bear interest at a rate per annum equal to (i) the greatest of (a) the prime rate in effect on such day, (b) the federal funds effective rate on such day plus 0.5%, and (c) the adjusted LIBO Rate for a one-month interest period on such day plus 1% plus (ii) the Applicable Rate (as defined in the Credit Agreement), which is determined based on a pricing grid that is dependent upon the credit rating of the Company as determined by either S&P or Moody's. Eurodollar borrowings under the Credit Agreement will bear interest at a rate per annum equal to (i) the adjusted LIBO Rate for the interest period in effect plus (ii) the Applicable Rate.
The Credit Agreement contains customary representations, warranties and events of default, as well as certain restrictive covenants customary for facilities of this type, including restrictions on indebtedness, liens, acquisitions and investments, restricted payments, asset sales, and fundamental changes. The Credit Agreement also includes a financial covenant that limits future Company borrowings by a maximum funded debt to capitalization ratio.
The Credit Agreement replaces the existing
The foregoing description of the Credit Agreement and the transactions contemplated thereby is qualified in its entirety by reference to the full text of the Credit Agreement, a copy of which is filed as Exhibit 10.1 to this Form 8-K and 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.
Please see disclosure set forth under Item 1.01 hereto, which is incorporated by reference into this item 2.03.
Item 8.01. Other Events.
On
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