GP Strategies Corporation (NYSE:GPX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
entered into a Fifth Amended and Restated Financing and Security
Agreement (the Credit Agreement) with Wells Fargo Bank, National
Association, as lender. The Credit Agreement provides for a new
revolving credit facility with up to a maximum principal amount
of $100 million, expiring on December 31, 2021, and for a term
loan in the principal amount of $40 million maturing on April 30,
2020. The Credit Agreement is secured by substantially all of the
Companys assets. The new term loan was used to refinance the
$11.1 million remaining balance of the existing term loan and
$28.9 million of borrowings outstanding under the existing
revolving credit facility.
one-month LIBOR market index rate (for borrowings in Dollars and
Sterling) or the daily one-month EURIBOR (for borrowings in
Euros) plus 2.50%. Based on the Companys financial performance,
the interest rate can be reduced to a minimum rate of the daily
one-month LIBOR market index rate plus 1.25%, with the rate being
determined based on the Companys maximum leverage ratio for the
preceding four quarters. Each unpaid advance on the revolving
loan will bear interest until repaid. The term loan is payable in
monthly installments of principal in the amount of $1,000,000
each plus applicable interest, beginning on January 1, 2017. The
Company may prepay the term loan or the revolving loan, in whole
or in part, at any time without premium or penalty, subject to
certain conditions. Amounts repaid or prepaid on the term loan
may not be reborrowed.
covenants, including covenants that limit or restrict the
Companys and its subsidiaries (subject to certain exceptions)
ability to, among other things, grant liens, make investments,
repurchase its stock, pay dividends, incur indebtedness, merge or
consolidate, dispose of assets, and make acquisitions, in each
case subject to customary exceptions for a credit facility of
this size and type. The Company is also required to maintain
compliance with a minimum fixed charge coverage ratio and a
maximum leverage ratio.
Agreement, the Company had $40 million of borrowings outstanding
under the term loan, $22.9 million of borrowings outstanding
under the revolving credit facility, and $71.6 million of
available borrowings under the revolving credit facility.
this report and is incorporated herein by reference.
Obligation under a Off-Balance Sheet Arrangement of a Registrant.
incorporated by reference into this Item 2.03.
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Exhibit No.
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Description
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10.1
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Fifth Amended and Restated Financing and Security
Agreement, dated December 15, 2016, by and between GP Strategies Corporation, as US Borrower, and General Physics (UK) Ltd., GP Strategies Holdings Limited, GP Strategies Limited and GP Strategies Training Limited, collectively as UK Borrowers, and Wells Fargo Bank, National Association, as Lender. |
About GP Strategies Corporation (NYSE:GPX)
GP Strategies Corporation is a performance improvement solutions provider of training, e-Learning solutions, management consulting and engineering services. The Company operates through four segments: Learning Solutions, Professional & Technical Services, Sandy Training & Marketing, and Performance Readiness Solutions. The Learning Solutions segment delivers training, curriculum design and development, e-Learning services, system hosting, training business process outsourcing and consulting services. The Professional & Technical Services segment provides training, consulting, engineering and technical services, including lean consulting, emergency preparedness, safety and regulatory compliance, chemical demilitarization and environmental services. The Sandy Training & Marketing segment provides product sales training. The Performance Readiness Solutions segment provides performance consulting and technology consulting services. GP Strategies Corporation (NYSE:GPX) Recent Trading Information
GP Strategies Corporation (NYSE:GPX) closed its last trading session down -0.15 at 29.00 with 9,832 shares trading hands.
