HYSTER-YALE MATERIALS HANDLING, INC. (NYSE:HY) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.Entry Into a Material Definitive Agreement
Item 2.03.Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
On March 14, 2018, Hyster-Yale Group, Inc. (the "Term Loan Borrower" or "Hyster-Yale Group"), along with Hyster-Yale Materials Handling, Inc. ("Hyster-Yale") and certain subsidiaries of Hyster-Yale, each acting as guarantors (collectively with Hyster-Yale Group and Hyster-Yale, the "Company"), entered into an amendment ("Term Loan Amendment") of the Company's $200.0 million original principal amount term loan (the "Term Loan") with certain financial institutions as lenders, and Bank of America, N.A., as administrative agent.
As a result of the Term Loan Amendment, among other things, borrowings under the Term Loan will bear interest at a floating rate, which can be a base rate or Eurodollar rate, as defined in the Term Loan, plus an applicable margin. The applicable margin, as provided in the Term Loan Amendment, is 2.25% for base rate loans and 3.25% for Eurodollar rate loans. The Term Loan Amendment also allows for the Company's disposition of all or any portion of Power Tap assets of Nuvera Fuel Cells, LLC (the "Power Tap Assets"). In addition, the Term Loan Amendment allows for the disposition of any other non-core assets with an aggregate book value not to exceed $10.0 million.
The Term Loan requires quarterly principal payments on the last day of each March, June, September and December which commenced September 30, 2017 in an amount equal to $2.5 million and the final principal repayment due on May 30, 2023. The Term Loan Borrower may also be required to make mandatory prepayments, in certain circumstances, as provided in the Term Loan.
On March 14, 2018, Hyster-Yale, its wholly owned subsidiaries, Hyster-Yale Group, Hyster-Yale Nederland B.V., Hyster-Yale International B.V., Hyster-Yale Holding B.V., Bolzoni Capital Holding B.V., Hyster-Yale UK Limited and Bolzoni Capital UK Limited (collectively, the "Facility Borrowers"), and certain subsidiaries of Hyster-Yale, as guarantors, entered into a Second Amendment to Amended and Restated Loan, Security and Guaranty Agreement (the "Amendment") with certain financial institutions as lenders, and Bank of America, N.A., as administrative agent and security trustee, for its $200.0 million floating-rate revolving credit facility (the "Facility"). to the Amendment, among other items, the terms of the Facility relating to the disposition of assets were amended to permit the disposition of all or any portion of the Power Tap Assets and any other non-core assets with an aggregate book value not to exceed $10.0 million as well.
Certain of the banks and financial institutions that are parties to the Term Loan and the Facility and their respective affiliates have in the past provided, are currently providing and in the future may continue to provide investment banking, commercial banking and other financial services to Hyster-Yale and its subsidiaries in the ordinary course of business for which they have received and will receive customary compensation. In the ordinary course of business, such banks and financial institutions and their respective affiliates may participate in loans and actively trade the equity securities of Hyster-Yale for their own account or for the accounts of customers and, accordingly, such banks and financial institutions and their respective affiliates may at any time hold long or short positions in such securities.
About HYSTER-YALE MATERIALS HANDLING, INC. (NYSE:HY)
Hyster-Yale Materials Handling, Inc., and its subsidiaries, design, engineer, manufacture, sell and service lift trucks and aftermarket parts. The Company markets its lift trucks and aftermarket parts under the Hyster and Yale brand names. The Company also operates through Nuvera Fuel Cells, Inc. (Nuvera), which is an alternative-power technology company focused on fuel-cell stacks and related systems. The Company operates through four segments: the Americas, EMEA, JAPIC and Nuvera. The Company’s lift truck business comprises its three management units: the Americas, EMEA and JAPIC. The Americas includes operations in the United States, Canada, Mexico, Brazil, Latin America and its corporate headquarters. EMEA includes operations in Europe, the Middle East and Africa. JAPIC includes operations in the Asia and Pacific regions, including China. The Company manufactures components, such as frames, masts and transmissions, and assembles lift trucks.