VOXX International Corporation Enters into Amendment No. 9 to the Second Amended and Restated Credit Agreement
April 23, 2021 at 06:44 pm IST
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VOXX International Corporation entered into Amendment No. 9 to the Second Amended and Restated Credit Agreement, which was dated as of April 19, 2021, by and among the Company, the Borrowers, the other Guarantors, the Lenders party thereto, and Wells Fargo Bank, National Association, as agent on behalf of the Lenders under the Credit Agreement. Pursuant to Amendment No. 9, certain provisions of the Credit Agreement have been amended to add and/or amend certain definitions including but not limited to the definition of Benchmark Replacement, Benchmark Replacement Adjustment, Benchmark Replacement Conforming Changes, Benchmark Replacement Date, Benchmark Transition Event, Benchmark Transition Start Date, Benchmark Unavailability Period, Covered Entity, Applicable Margin, Base Rate, Eligible Accounts, Maximum Credit, Maximum Revolver Amount, LC Sublimits, Real Property Valuation, LIBOR Rate, and SOFR Rate. Amendment No. 9 will have a Maturity Date of April 19, 2026, provides for Maximum Credit and Maximum Revolver Amount of $140,000,000 and an Unused Line Fee equal to 0.65% per annum. Amendment No. 9 also provides that if the LIBOR Rate is below 0.75%, the LIBOR Rate shall be deemed to be 0.75%; except, that, from May 1, 2021 and at all times thereafter, if any such rate is below 0.25%, the LIBOR Rate shall be deemed to be 0.25% and, if the Applicable Margin Rate is below 1.75%, the Applicable Margin Rate shall be deemed to be 1.75%; the Applicable Margin was amended to provide for Applicable LIBOR and Base Rate Margins based on Quarterly Average Excess Availability from $0 to greater than $50 million. Amendment No. 9 also states that a Benchmark Replacement Adjustment (which may include the Term SOFR) will be a replacement rate or mechanism by the Relevant Government Body; if the Benchmark Replacement as so determined would be less than 0.75%, the Benchmark Replacement shall be deemed to be 0.75%, except, that, from May 1, 2021 and at all times thereafter, if the Benchmark Replacement as so determined would be less than 0.25%, the Benchmark Replacement shall be deemed to be 0.25%; and, the Applicable Margin was amended to provide for Applicable SOFR and Base Rate Margins based upon Quarterly Average Excess Availability from $0 to greater than $50 million. The Amendment No. 9 also increased the Real Property Availability by reappraising the valuation of the Real Property. Amendment No. 9 stipulates an Advance Rate of 55% of the appraised Fair Market Value of the eligible Real Estate with total Aggregate Availability from Real Estate not to exceed $20,000,000. Availability Concentrations for Costco, Wal-Mart, Amazon, Ford Motor Corp. and FCA Corp. were also increased. The Amendment Fee was $620,000.
VOXX International Corporation is an international manufacturer and distributor in the automotive electronics, consumer electronics, and biometrics industries. The Company has a portfolio of approximately 35 brands. The Company operates through three segments: Automotive Electronics, Consumer Electronics and Biometrics. The Automotive Electronics segment designs, manufactures, distributes and markets rear-seat entertainment devices, remote start systems, automotive security products and devices, vehicle access systems, mobile interface modules, mobile multimedia devices, and others. Consumer Electronics segment designs, manufactures, distributes and markets home theater systems, premium loudspeakers, outdoor speakers, A/V receivers, business music systems, streaming music systems, cinema speakers, architectural speakers, wireless and Bluetooth speakers and soundbars. Its Biometrics segment designs, markets and distributes iris identification and biometric security related products.