Avon Products, Inc. (NYSE:AVP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement
On December 21, 2017, Avon Products, Inc. (“Avon”), Avon International Operations, Inc., a wholly-owned subsidiary of Avon, and the lenders party thereto, entered into the Third Amendment to Credit Agreement (the “Amendment”), which amends the Revolving Credit Agreement, dated as of June 5, 2015 (as amended by the First Amendment to Credit Agreement and General Security Agreement, dated as of December 7, 2015 and the Second Amendment to Credit Agreement and General Security Agreement and First Amendment to API Limited Recourse Guaranty, dated as of August 1, 2016, as so amended, the “Revolving Credit Agreement”). The Amendment will become effective upon the satisfaction of certain customary conditions. Upon effectiveness, among other things, the Amendment will: (i) decrease the Interest Coverage Ratio (as defined in the Revolving Credit Agreement) covenant to 2.75x beginning with the fiscal quarter ended December 31, 2017, increasing to 3.0x beginning with the fiscal quarter ended December31,2018 and to 3.5x beginning with the fiscal quarter ended March 31, 2019 and thereafter, (ii) increase the Total Leverage Ratio (as defined in the Revolving Credit Agreement) covenant to 4.0x beginning with the fiscal quarter ended December 31, 2017, decreasing to 3.75x beginning with the fiscal quarter ended June 30, 2018 and to 3.5x beginning with the fiscal quarter ended December 31, 2018 and
thereafter and (iii) amend the definition of “Consolidated EBIT” to illustrate that the calculation of certain permitted add-backs that are subject to an aggregate cap of 15% of Consolidated EBITDA (as defined in the Revolving Credit Agreement) are calculated inclusive of such permitted add-backs.
The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment, attached hereto as Exhibit 10.1, and incorporated herein by reference.
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits
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Exhibit No. |
Description |
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10.1 |
Third Amendment to Credit Agreement, dated December 21, 2017. |
AVON PRODUCTS INC ExhibitEX-10.1 2 avon-2017xthirdamendmentto.htm EXHIBIT 10.1 Exhibit EXHIBIT 10.1THIRD AMENDMENT TO CREDIT AGREEMENT THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Third Amendment”),…To view the full exhibit click here
About Avon Products, Inc. (NYSE:AVP)
Avon Products, Inc. is a manufacturer and marketer of beauty and related products. The Company’s product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics). Fashion and Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. The Company’s segments are based on geographic operations and include commercial business units in Latin America; Europe, Middle East and Africa, and Asia Pacific. The Company’s business is conducted primarily in one channel, direct selling. The Company’s products include Anew Clinical Overnight Hydration Mask, Anew Power Serum, Ultra Color Indulgence Lip Color, SuperExtend Winged Out Mascara, Big & False Lash Volume Mascara, Outspoken Party! by Fergie Fragrance and Avon Attraction for Him and for Her Fragrances.