NAVISTAR INTERNATIONAL CORPORATION (NYSE:NAV) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
Amendment and Restatement of ABL Credit Agreement
On August4, 2017, Navistar, Inc. (the “Borrower”) entered into a Second Amended and Restated ABL Credit Agreement (the “Amended ABL Credit Agreement”), among the Borrower, the Lenders (as defined therein) party thereto, Bank of America, N.A., as Administrative Agent, and JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A., as Syndication Agents. The Amended ABL Credit Agreement amended and restated the existing senior secured, asset-based revolving credit facility entered into on August17, 2012.
The Amended ABL Credit Agreement, among other things, (i)reduces the size of the revolving credit facility from $175,000,000 to $125,000,000, (ii)reduces the interest rate applicable to the outstanding borrowings under the revolving credit facility by an average of 0.50% and reduces the fees applicable to cash collateralized letters of credit by an average of 1.00%, (iii)extends the maturity date from May18,2018 to August4, 2022, subject to a springing maturity based upon the maturity of the Borrower’s Senior Secured Term Loan and the maturity of Navistar International Corporation’s Senior Notes, (iv)provides for a maximum amount of uncommitted new revolving commitments of $150,000,000, (v)provides for an unlimited amount of secured and unsecured debt so long as the maturity is after the maturity date of the Amended ABL Credit Agreement, there is no default under the Amended ABL Credit Agreement and any collateral does not include assets that are part of the borrowing base for the Amended ABL Credit Agreement, (vi)reduces the liquidity block from $35,000,000 to $12,500,000, and (vii)increases various debt and investment baskets. Under the terms of the Amended ABL Credit Agreement, the interest rate on the outstanding borrowings is based, at the Borrower’s option, on an adjusted eurodollar rate, plus a margin of 2.75%, or an alternate base rate, plus a margin of 1.75%. In connection with the Amended ABL Credit Agreement, the Borrower paid certain fees, the total of which the Borrower does not believe is material to its financial position or results of operations.
The foregoing description of the Amended ABL Credit Agreement is qualified in its entirety by reference to the Amended ABL Credit Agreement, which is filed as Exhibit 10.1 and incorporated by reference herein.
| Item 1.01 | FINANCIAL STATEMENTS AND EXHIBITS |
(d) Exhibits
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ExhibitNo. |
Description |
| 10.1 | Second Amended and Restated ABL Credit Agreement, among Navistar, Inc., as Borrower, the Lenders party thereto, Bank of America, N.A., as Administrative Agent, and JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A., as Syndication Agents. |
NAVISTAR INTERNATIONAL CORP ExhibitEX-10.1 2 d434821dex101.htm EX-10.1 EX-10.1 Exhibit 10.1 EXECUTION VERSION SECOND AMENDED AND RESTATED ABL CREDIT AGREEMENT Dated as of August 4,…To view the full exhibit click here
About NAVISTAR INTERNATIONAL CORPORATION (NYSE:NAV)
Navistar International Corporation is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The Company’s segments include Truck, Parts, Global Operations (collectively, Manufacturing operations) and Financial Services, which consists of NFC and its foreign finance operations (collectively, Financial Services operations). The Truck segment manufactures and distributes Class 4 through 8 trucks, buses and military vehicles under the International and IC Bus brands, along with production of engines. The Parts segment supports its brands of International commercial trucks, IC buses and engines. The Global Operations segment includes operations of its subsidiary, International Industria de Motores da America do Sul Ltda. (IIAA). The Financial Services segment provides and manages retail, wholesale and lease financing of products sold by the Truck and Parts segments and their dealers.
