HNI Corporation (NYSE:HNI) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
Entry into a Material Definitive Agreement
On April 20, 2018, HNI Corporation (the “Corporation”) amended and restated its credit facility to provide additional financial flexibility by increasing its borrowing capacity and to extend the term of its current facility.
The Corporation, certain domestic subsidiaries of the Corporation, the lenders and Wells Fargo Bank, National Association, as administrative agent, entered into the Third Amended and Restated Credit Agreement (the “Credit Agreement”) on April 20, 2018. The Credit Agreement amends and restates the Second Amended and Restated Credit Agreement, dated June 9, 2015, as amended by the First Amendment to Second Amended and Restated Credit Agreement, dated January 6, 2016 (the “Prior Facility”).
The Credit Agreement increases the revolving commitment of the lenders from $400,000,000 to $450,000,000 (while retaining the Corporation’s option under the Prior Facility to increase its borrowing capacity by an additional $150,000,000) and extends the maturity date from January 2021 to April 2023 with the option for two additional one-year extensions. Additionally, certain subsidiary guarantors under the Prior Facility were released as guarantors under the Credit Agreement.
The Credit Agreement contains customary affirmative and negative covenants, events of default and acceleration provisions for credit facilities of this type. The covenants permit the Corporation to use proceeds of the loans to provide for the working capital and general corporate requirements of the Corporation, including acquisitions, payment of dividends and stock repurchases. All other material terms and conditions of the Credit Agreement remain unchanged from the Prior Facility, a description of which can be found in “Note 7. Long-Term Debt” in the Notes to Consolidated Financial Statements included in the Corporation’s Annual Report on Form 10-K filed on February 23, 2018.
Some of the lenders or their affiliates perform commercial banking, investment banking, underwriting and other financial advisory services for the Corporation, for which they receive customary compensation.
The foregoing description of the Credit Agreement and related matters is only a summary and is qualified in its entirety by reference to the Credit Agreement, which is filed as Exhibit 10.1 hereto and incorporated herein by reference.
Section 2 – Financial Information
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
The information contained in Item 1.01 is incorporated herein by reference.
Section 9 – Financial Statements and Exhibits
Financial Statements and Exhibits
HNI CORP ExhibitEX-10.1 2 hnicreditagreement42018c….To view the full exhibit click
About HNI Corporation (NYSE:HNI)
HNI Corporation is a provider of office furniture and hearth products. The Company manufactures and markets gas and wood burning fireplaces. It operates through two segments: office furniture and hearth products. Its office furniture segment manufactures and markets a range of metal and wood commercial and home office furniture, which includes storage products, desks, credenzas, chairs, tables, bookcases, freestanding office partitions, and panel systems and other related products. Its hearth products segment manufactures and markets a range of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings and accessories, principally for the home. Its office furniture products are sold through dealers, wholesalers and office product distributors, and are also sold directly to end user customers, and federal, state and local governments. Its hearth products are sold through dealers and distributors, as well as through the Company-owned distribution and retail outlets.