Insperity, Inc. (NYSE:NSP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry into a Material Definitive Agreement.
On February6, 2018, Insperity, Inc. (the “Company” or “we”) entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with ZB, N.A. dba Amegy Bank, as administrative agent, and certain financial institutions, as lenders. The Credit Agreement amends and restates the Company’s existing credit agreement, dated as of September 15, 2011 (as amended, the “Existing Credit Agreement”), to, among other things, (i) increase the aggregate principal amount that the Company may borrow under the revolving credit facility thereunder (the “Facility”) to $350 million, (ii) increase the aggregate principal amount to which the Facility may be increased, subject to certain terms and conditions, to $400 million, (iii) increase the swing line loan and letter of credit subfacilities to $30 million each and (iv) reduce the applicable margin related to LIBOR-based loans. The Facility is available for working capital and general corporate purposes.
The Company’s obligations under the Facility are secured by 65% of the stock of the Company’s captive insurance subsidiary and are guaranteed by all of the Company’s domestic subsidiaries. The Facility matures on February 6, 2023. Borrowings under the Facility bear interest at an alternate base rate or LIBOR, at our option, plus an applicable margin. Depending on our leverage ratio (as defined in the Credit Agreement), the applicable margin varies (i) in the case of LIBOR loans, from 1.50% to 2.25% and (ii) in the case of alternate base rate loans, from 0.00% to 0.50%. The alternate base rate is the highest of (x) the prime rate most recently published in The Wall Street Journal, (y) the federal funds rate plus 0.50% and (z) the 30-day LIBOR rate plus 2%.
The Facility contains affirmative and negative covenants, which we believe are customary for arrangements of this nature, and financial covenants limiting the Company’s minimum interest coverage ratio and maximum leverage ratio, as more fully described in the Credit Agreement.
The foregoing summary is qualified in its entirety by reference to the Credit Agreement, a copy of which is filed as Exhibit 10.1 to this Form 8-K and is incorporated in this Item 1.01 by reference.
Item 2.02. Results of Operations and Financial Condition.
On February12, 2018, Insperity, Inc. issued a press release announcing the company’s financial and operating results for the quarter and year ended December 31, 2017. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated by reference.
Item 9.01.Financial Statements and Exhibits.
INSPERITY, INC. ExhibitEX-10.1 2 ex101amendedandrestatecred.htm EXHIBIT 10.1 Exhibit Exhibit 10.1AMENDED AND RESTATED CREDIT AGREEMENTDated as ofFebruary 6,…To view the full exhibit click here
About Insperity, Inc. (NYSE:NSP)
Insperity, Inc. (Insperity) provides an array of human resources (HR) and business solutions. The Company’s HR services offerings are provided through its Workforce Optimization and Workforce Synchronization solutions (together, its professional employer organization (PEO) HR Outsourcing solutions), which encompass a range of human resources functions, including payroll and employment administration, employee benefits, workers’ compensation, government compliance, performance management, and training and development services. In addition to its PEO HR Outsourcing solutions, the Company offers human capital management, payroll services, time and attendance, performance management, organizational planning, recruiting services, employment screening, financial and expense management services, retirement services and insurance services, many of which are offered through desktop applications and cloud-based delivery models.
