Generac Holdings Inc. (NYSE:GNRC) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
Amendment of Term Loan
On June 8, 2018, Generac Power Systems, Inc. (the “Borrower”), a wholly owned subsidiary of Generac Holdings,Inc. (the “Company”), amended that certain Term Loan Credit Agreement dated as of February 9, 2012 (as amended and/or restated, supplemented, or otherwise modified from time to time, the “Term Loan Credit Agreement”), which amendment modified the pricing for the term loan thereunder (the “Term Loan”) by favorably reducing certain applicable margin rates, among other items. Previously, the Term Loan accrued interest at a per annum rate equal to LIBOR plus an applicable margin of 2.00%, and a LIBOR floor of 0.75%. Effective with this amendment, the Term Loan will accrue interest at a per annum rate equal to LIBOR plus an applicable margin of 1.75%, and a LIBOR floor of 0.75%. Concurrent with this amendment, the Borrower is also paying down $50.0 million on the existing balance of $929.0 million for a new outstanding balance of $879.0 million. The Term Loan amendment is attached hereto as Exhibit 10.1 and incorporated herein by reference. The foregoing summary does not purport to be complete and is qualified in its entirety by reference to such exhibit.
Amendment and Restatement of ABL Revolving Credit Facility
On June 12, 2018, the Borrower entered into a Second Amended and Restated Credit Agreement (as amended and/or restated, supplemented, or otherwise modified from time to time, (the “ABL Credit Agreement”), among the Borrower, Generac Holdings UK Limited, as U.K. Borrower, certain domestic subsidiaries of the Borrower, Generac Acquisition Corp., the lenders party thereto, Bank of America, N.A., as Administrative Agent, JPMorgan Chase Bank, N.A., as syndication agent, and Wells Fargo Bank, National Association, as Documentation Agent.
The ABL Credit Agreement provides for a three-year extension of the maturity date in respect of the senior secured ABL revolving credit facility provided thereunder (the “ABL Facility”), as well as an increase in the size of the ABL Facility from $250.0 million to $300.0 million. Up to $50.0 million of the ABL Facility can be used by the U.K. Borrower for borrowings in U.S. Dollars, Euros, and/or Pound Sterling. Subject to the terms of the ABL Credit Agreement, the extended maturity date of the ABL Facility is June 12, 2023. The ABL Credit Agreement further provides for an increase in the Letter of Credit sublimit under the ABL Facility from $25.0 million to $75.0 million, and a favorable pricing reduction in certain applicable interest rates, among other items. Borrowings under the ABL Facility previously bore interest at a per annum rate based upon LIBOR plus an applicable margin of between 1.25% and 1.75%, but will now bear interest at a per annum rate based upon LIBOR plus an applicable margin of between 1.125% and 1.375%, in each case subject to adjustments based upon average availability under the ABL Facility.
The ABL Credit Agreement is attached hereto as Exhibit 10.2 and incorporated herein by reference. The foregoing summary does not purport to be complete and is qualified in its entirety by reference to such exhibit.
| Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
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ExhibitNo. |
Description |
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10.1 |
2018 Replacement Term Loan Amendment, dated as of June 8, 2018, to that certain Credit Agreement, dated as of February 9, 2012, as amended and restated as of May 30, 2012, as further amended and restated as of May 31, 2013, as amended by the First Amendment dated as of May 18, 2015, as amended by the Replacement Term Loan Amendment dated as of November 2, 2016, as amended by the Replacement Term Loan Amendment dated May 11, 2017, and as amended by the Replacement Term Loan Amendment dated December 8, 2017, among Generac Power Systems, Inc., Generac Acquisition Corp., the lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and the other agents named therein. |
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10.2 |
Second Amended and Restated Credit Agreement, dated as of June 12, 2018, among Generac Power Systems, Inc., its Subsidiaries listed as Borrowers on the pages thereto, Generac Acquisition Corp., the lenders party thereto, Bank of America, N.A. as Administrative Agent, JPMorgan Chase Bank, N.A. as Syndication Agent, and Wells Fargo Bank, National Association as Documentation Agent. |
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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GENERAC HOLDINGS INC. |
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/s/ Raj Kanuru |
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Name: Raj Kanuru |
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Date: June 13, 2018 |
Title: SVP, General Counsel & Secretary |
EXHIBIT INDEX
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10.1 |
2018 Replacement Term Loan Amendment, dated as of June 8, 2018, to that certain Credit Agreement, dated as of February 9, 2012, as amended and restated as of May 30, 2012, as further amended and restated as of May 31, 2013, as amended by the First Amendment dated as of May 18, 2015, as amended by the Replacement Term Loan Amendment dated as of November 2, 2016, as amended by the Replacement Term Loan Amendment dated May 11, 2017, and as amended by the Replacement Term Loan Amendment dated December 8, 2017, among Generac Power Systems, Inc., Generac Acquisition Corp., the lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and the other agents named therein. |
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10.2 |
Second Amended and Restated Credit Agreement, dated as of June 12, 2018, among Generac Power Systems, Inc., its Subsidiaries listed as Borrowers on the GENERAC HOLDINGS INC. ExhibitEX-10.1 2 ex_116401.htm EXHIBIT 10.1 ex_116401.htm Exhibit 10.1 Execution Version 2018 REPLACEMENT TERM LOAN AMENDMENT 2018 REPLACEMENT TERM LOAN AMENDMENT,…To view the full exhibit click |