ICF International, Inc. (NASDAQ:ICFI) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a RegistrantItem 2.03Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
On August 22, 2017, ICF International, Inc. (the “Company”) entered into an International Swap Dealers Association, Inc. Master Agreement (“Master Agreement”) with Citizens Bank of Pennsylvania (“Citizens”). The Master Agreement permits the Company to enter into certain derivative and/or hedging transactions (“Transactions”) to manage the risk relating to interest rate volatility.
The Master Agreement was executed to the Company’s Amended and Restated Business Loan and Security Agreement with a syndication of 11 commercial banks (the “Credit Facility”). The Company has the ability to borrow funds under its Credit Facility at interest rates based on both LIBOR and prime rates, at its discretion, plus their applicable margins.
On August 31, 2017, to the Master Agreement with Citizens, the Company entered into a swap transaction utilizing a notional amount of $25 million, with an effective date of August 31, 2018 and a maturity date of August 31, 2023. The Transaction will be governed by the Master Agreement, including the related Schedule to the Master Agreement. The swap transaction is intended to mitigate the Company’s interest rate risk as it provides for the Company to pay a fixed rate of 1.8475% per annum plus the applicable margin to the Credit Facility. Notwithstanding the terms of the interest rate swap transaction, the Company is ultimately obligated for all amounts due and payable under the Credit Facility. The Company may enter into additional Transactions in the future from time to time.
Citizens and its affiliates perform and may in the future perform, for the Company and its subsidiaries, various commercial banking and transfer agent services, for which they will receive customary fees and expenses.
About ICF International, Inc. (NASDAQ:ICFI)
ICF International, Inc., formerly ICF Consulting Group Holdings, LLC, provides professional services and technology-based solutions to government and commercial clients, including management, technology and policy consulting and implementation services. It operates through professional services for government and commercial clients segment. Its services address over four markets: energy, environment and infrastructure; health, education and social programs; safety and security, and consumer and financial. Its services include research and analytic services, assessment and advisory services, design and management services, solution identification and implementation services, and engagement services. It researches policy, industry and stakeholder issues, trends and behavior. It collects and analyzes various data to understand issues and options for its clients. It designs, develops and manages plans, frameworks, programs and tools for its clients’ mission or business performance.