DARLING INGREDIENTS INC. (NASDAQ:DAR) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into a Material Definitive Agreement. |
Effective December16, 2016, Darling Ingredients Inc., a Delaware
corporation (theCompany), and certain of its subsidiaries entered
into an amendment (the Fourth Amendment) with its lenders to the
Second Amended and Restated Credit Agreement, dated as of
January6, 2014 (as amended, the Credit Agreement), among the
Company, as borrower, the other subsidiary borrowers party
thereto, the subsidiary guarantors, JPMorgan Chase Bank, N.A., as
administrative agent, the lending institutions party thereto and
the other agents party thereto. Capitalized terms used but not
otherwise defined herein have the meanings ascribed in the Credit
Agreement.
Among other things, the Fourth Amendment (i)extends the maturity
date of the Term A loans and revolving credit facility loans
under the Credit Agreement from September27, 2018 to December16,
2021, subject to a 91-day springing adjustment if the Term B
loans are outstanding 91 days prior to the maturity date (January
6, 2021) of the Term B loans; (ii)resets the amortization
schedule of the Term A loans to their original schedule; (iii)
adjusts the applicable margin pricing grid on borrowings under
the Term A Loan and revolving credit facility which adjusts based
on the Companys total leverage ratio as set forth in the Credit
Agreement; (iv) eliminates the secured leverage ratio financial
maintenance covenant so that from and after the effective date of
the Fourth Amendment the Companys financial covenants consist of
maintaining of total leverage ratio not to exceed 5:50 to 1.00
and maintaining an interest coverage ratio of not less than 3.00
to 1.00;(v) modifies certain of the negative covenants to include
a senior leverage ratio incurrence-based test and to increase the
allowances for certain actions, including debt, investments and
restricted payments; and (vi) makes other updates and changes.
The summary set forth above is not intended to be complete and is
qualified in its entirety by reference to the full text of the
Fourth Amendment attached hereto as Exhibit 10.1.
| Item9.01. | Exhibits. |
10.1 Fourth Amendment, dated as of December16, 2016, to Second
Amended and Restated Credit Agreement by and among Darling
Ingredients Inc., as the parent borrower, the other subsidiary
borrowers party thereto, the subsidiary guarantors, JPMorgan
Chase Bank, N.A., as administrative agent, and certain lenders
party thereto.
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