HORIZON GLOBAL CORPORATION (NYSE:HZN) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into a Material Definitive Agreement. |
On March31, 2017, Horizon Global Corporation (the Company)
entered into the 2017 Replacement Term Loan Amendment (Third
Amendment to Credit Agreement) (the Amendment) with JPMorgan
Chase Bank, N.A., as administrative agent, and the other
institutions named on the pages thereto, to amend the Term Loan
Credit Agreement, dated as of June30, 2015 (the Credit
Agreement), by and among the Company, as borrower, JPMorgan Chase
Bank, N.A., as administrative agent, and the other lenders that
are parties thereto. The Amendment provides for a replacement
term loan facility, in the original aggregate principal amount of
$160,000,000, to replace the prior term loan facility. The
proceeds of the replacement term loan facility, fully funded on
March31, 2017, were used to repay in full the outstanding
principal amount of the term loans outstanding immediately prior
to the effectiveness of the Amendment. After giving effect to the
Amendment, among other modifications, the Applicable Rate (as
defined in the Credit Agreement) for loans bearing interest at
the (i)Alternate Base Rate (as defined in the Credit Agreement)
decreased from 5.00% to 3.50% and (ii)Adjusted LIBO Rate (as
defined in the Credit Agreement) decreased from 6.00% to 4.50%.
The Adjusted LIBO Rate (as defined in the Credit Agreement)
remains subject to a 1.0% floor. The maturity date, customary
negative covenants and financial maintenance covenant remain
unchanged as part of the Amendment.
Certain lenders and agents that are parties to the Amendment have
in the past performed, and may in the future from time to time
perform, investment banking, financial advisory, lending or
commercial banking services for the Company and its subsidiaries
and affiliates, for which they have received, and may in the
future receive, customary compensation and reimbursement of
expenses.
The above description of the material terms and conditions of the
Amendment do not purport to be complete and are qualified in
their entirety by reference to the full text of the Amendment,
which is filed asExhibit 10.1hereto.
| Item2.03. |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth under Item 1.01 above is hereby
incorporated into this Item 2.03 by reference.
| Item9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits. |
|
Exhibit No. |
Description |
|
| 10.1 |
2017 Replacement Term Loan Agreement (Third Amendment to Credit Agreement), dated as of March31, 2017, among Horizon Global Corporation, the several banks and other financial institutions party thereto and JPMorgan Chase Bank, N.A., as administrative agent |
About HORIZON GLOBAL CORPORATION (NYSE:HZN)
Horizon Global Corporation is a designer, manufacturer and distributor of a range of custom-engineered towing, trailering, cargo management and other related accessory products serving the automotive aftermarket, retail and original equipment (OE) channels. The Company operates through two segments: Cequent Americas and Cequent APEA. The Cequent Americas segment consists of two operating segments: Cequent Performance Products (CPP), a manufacturer of aftermarket and original equipment manufacturer (OEM) towing and trailering products and accessories, and Cequent Consumer Products (CCP), a provider of towing, trailering, vehicle protection and cargo management solutions serving the end user through retailers. The Cequent Americas segment has operates in North America, and its towing and trailering-related products are sold through retail, aftermarket and OE channels. The Cequent APEA segment focuses its sales and manufacturing efforts outside of the Americas, operating in Australia. HORIZON GLOBAL CORPORATION (NYSE:HZN) Recent Trading Information
HORIZON GLOBAL CORPORATION (NYSE:HZN) closed its last trading session down -0.03 at 12.99 with 549,618 shares trading hands.
