DOUGLAS DYNAMICS,INC. (NYSE:PLOW) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a RegistrantItem 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On August17, 2017, Douglas Dynamics, L.L.C. (“DDI LLC”), as borrower, and Douglas Dynamics,Inc. (the “Company”), Douglas Dynamics Finance Company, Fisher, LLC, Trynex International LLC, Henderson Enterprises Group,Inc., Henderson Products,Inc. and Dejana Truck& Utility Equipment Company, LLC, as guarantors (the “Guarantors”), entered into the 2017 Replacement Term Loan Amendment (the “Replacement Amendment”), which amends the Amended and Restated Credit and Guaranty Agreement dated as of December31, 2014 (as amended through the Replacement Amendment, the “Term Loan Credit Agreement”) with the banks and financial institutions listed therein, as lenders, and JPMorgan Chase Bank, N.A., as collateral agent and administrative agent. The following summary of the material terms of the Replacement Amendment does not purport to be complete and is qualified in its entirety by reference to the Replacement Amendment, a copy of which is attached as Exhibit10.1 to this Current Report on Form8-K and is incorporated by reference herein.
The Replacement Amendment, among other things:
(a) Replaced the existing senior secured term loan facility with a new senior secured term loan facility in the aggregate principal amount of $313,962,401.02. The final maturity date of the senior secured term loan facility is December31, 2021.
(b) Decreased the interest rate margins that apply to the term loan facility from 2.50% to 2.00% for ABR Loans (as defined in the Term Loan Credit Agreement) and from 3.50% to 3.00% for Eurodollar Rate Loans (as defined in the Term Loan Credit Agreement), such that the senior secured term loan facility generally bears interest at a rate of (at DDI LLC’s election) either (i)2.00% per annum plus the greatest of (a)the Prime Rate (as defined in the Term Loan Credit Agreement) in effect on such day, (b)the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers plus 0.50% and (c)1.00% plus the greater of (1)the London Interbank Offered Rate for a one month interest period multiplied by the Statutory Reserve Rate (as defined in the Term Loan Credit Agreement) and (2)2.00% or (ii)3.00% per annum plus the greater of (a)the London Interbank Offered Rate for the applicable interest period multiplied by the Statutory Reserve Rate and (b)1.00%.
Item 9.01. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Exhibits. The following exhibit is being filed herewith:
(10.1) 2017 Replacement Term Loan Amendment, dated as of August17, 2017, among Douglas Dynamics, L.L.C., as borrower, Douglas Dynamics,Inc., Douglas Dynamics Finance Company, Fisher, LLC, Trynex International LLC, Henderson Enterprises Group,Inc., Henderson Products,Inc., and Dejana Truck& Utility Equipment Company, LLC as guarantors, JPMorgan Chase Bank, N.A., as administrative agent and as collateral agent, and the banks and financial institutions party thereto.
