InfuSystem Holdings, Inc. (NYSEMKT:INFU) Files An 8-K Entry into a Material Definitive Agreement
Item1.01.
| Entry into a Material Definitive Agreement. |
On March22, 2017, InfuSystem Holdings, Inc. (the Company), and
its direct and indirect subsidiaries, entered into a Second
Amendment to the Credit Agreement (the Second Amendment) with
JPMorgan Chase Bank, N.A., as lender (the Lender), which amends
the credit agreement among the Company, its direct and indirect
subsidiaries, and the Lender, entered into on March23, 2015 (the
Credit Agreement). All capitalized terms used herein are defined
in either the Second Amendment or the Credit Agreement.
The Second Amendment amends the Credit Agreement to, among other
things:
| (i) |
amend the definition of Fixed Charges in Section1.01 of the Credit Agreement by deleting the phrase therein that reads as follows: |
plus prepayments and scheduled principal payments on
Indebtedness actually made (excluding the prepayment on any debt
paid as a result of entering into this Agreement)
and replacing such phrase therein with the phrase
plus scheduled principal payments on Indebtedness actually
made (excluding the prepayment on any debt paid as a result of
entering into this Agreement)
| (ii) | restate Section 6.12(a) of the Credit Agreement as follows: |
(a)Leverage Ratio. The Borrowers will not permit the
Leverage Ratio to exceed (i) 3.0 to 1.0 at any time on or after
the Effective Date but prior to December31, 2015, (ii) 2.75 to
1.0 at any time on or after December31, 2015 but prior to
March31, 2018, (iii) 2.50 to 1.0 at any time on or after March31,
2018 but prior to March31, 2019 or (iv) 2.25 to 1.00 at any time
on or after March31, 2019.
As a result of the change to the definition of Fixed Charges
contained within the Second Amendment, the Company will have
increased ability to prepay its indebtedness under the Credit
Agreement without negatively impacting its financial covenants.
Additionally, the change to the leverage covenant delays the
scheduled reductions in the maximum allowed Leverage Ratio by one
full year for each such scheduled reduction (for example, the
reduction of the maximum allowed ratio scheduled to be effective
on March31, 2017 which reduces the allowed ratio from 3.0x to
2.75x will be delayed until March31, 2018, with all subsequent
reductions similarly delayed by one year).
The foregoing description of the Second Amendment does not
purport to be complete and is qualified in its entirety by
reference to the complete text of the Second Amendment, which is
filed herewith, as well as the complete text of the Credit
Agreement, which was filed with the Securities and Exchange
Commission on May12, 2015 as Exhibit 10.1 to the Companys
Quarterly Report on Form 10-Q.
| Item2.03. |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information in Item 1.01 of the Current Report on Form 8-K is
hereby incorporated by reference into this Item 2.03.
| Item9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits: |
| 10.1 |
Second Amendment to the Credit Agreement, dated as of March22, 2017, among InfuSystem Holdings, Inc., and its direct and indirect subsidiaries, with JPMorgan Chase Bank, N.A., as Lender. |
About InfuSystem Holdings, Inc. (NYSEMKT:INFU)
InfuSystem Holdings, Inc. is a provider of infusion pumps and related products and services for patients in the home, oncology clinics, ambulatory surgery centers and other sites of care. The Company delivers local, field-based customer support and also operates pump service and repair Centers of Excellence in Michigan, Kansas, California, Texas and Ontario, Canada. Its service is to supply electronic ambulatory infusion pumps and associated disposable supply kits to oncology clinics, infusion clinics and hospital outpatient chemotherapy clinics for the treatment of a range of cancers, including colorectal cancer, pain management and other disease states. It sells or rents new and pre-owned pole mounted and ambulatory infusion pumps to, and provides biomedical recertification, maintenance and repair services for oncology practices, as well as other alternate site settings, including home care and home infusion providers, skilled nursing facilities, pain centers and others. InfuSystem Holdings, Inc. (NYSEMKT:INFU) Recent Trading Information
InfuSystem Holdings, Inc. (NYSEMKT:INFU) closed its last trading session 00.00 at 2.10 with 25,019 shares trading hands.
