Trecora Resources (NYSE:TREC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement
Hampton Resources, Inc. (SHR), Gulf State Pipe Line Company, Inc.
(GSPL), and Trecora Chemical, Inc. (TC) (SHR, GSPL and TC
collectively the Guarantors) entered into a Second Amendment to
Amended and Restated Credit Agreement (2nd Amendment) with the
lenders which from time to time are parties to the Amended and
Restated Credit Agreement (collectively, the Lenders) and Bank of
America, N.A., a national banking association, as Administrative
Agent for the Lenders. The 2nd Amendment increases the Maximum
Consolidated Leverage Ratio financial covenant of 3.25x to 4.00x
at March 31, 2017, and 4.25x at June 30, 2017, before stepping
down to 3.75x at September 30, 2017, 3.50x at December 31, 2017,
and reverting to the original financial covenant of 3.25x at
March 31, 2018.
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Four Fiscal Quarter Ending
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Maximum Consolidated Leverage Ratio
|
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March 31, 2017
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4.00 to 1.00
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June 30, 2017
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4.25 to 1.00
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September 30, 2017
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3.75 to 1.00
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December 31, 2017
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3.50 to 1.00
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March 31, 2018 and each fiscal quarter thereafter
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3.25 to 1.00
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Charge Coverage Ratio of 1.25x to 1.10x at March 31, 2017, 1.05x
at June 30, 2017 and September 30, 2017, 1.10x at December 31,
2017, before reverting to the original financial covenant of
1.25x at March 31, 2018.
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Four Fiscal Quarter Ending
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Minimum Consolidated Fixed Charge Coverage Ratio
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March 31, 2017
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1.10 to 1.00
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June 30, 2017
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1.05 to 1.00
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September 30, 2017
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1.05 to 1.00
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December 31, 2017
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1.10 to 1.00
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March 31, 2018 and each fiscal quarter thereafter
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1.25 to 1.00
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pricing were added levels 4 and 5.
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Level
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Consolidated
Leverage Ratio
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LIBOR Margin
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Base Rate Margin
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Commitment Fee
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Less than 1.50 to 1.00
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2.00%
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1.00%
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0.25%
|
|
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Greater than or equal to 1.50 to 1.00 but less than 2.00 to
1.00 |
2.25%
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1.25%
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0.25%
|
|
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Greater than or equal to 2.00 to 1.00 but less than 3.00 to
1.00 |
2.50%
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1.50%
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0.375%
|
|
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Greater than or equal to 3.00 to 1.00 but less than 3.50 to
1.00 |
2.75%
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1.75%
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0.375%
|
|
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Greater than or equal to 3.50 to 1.00
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3.00%
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2.00%
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0.375%
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Obligation under an Off-Balance Sheet Arrangement of a Registrant
1.01 above and are incorporated as if fully restated herein.
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Exhibit No.
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Description of Exhibit
|
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99.1
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Second Amendment to Amended and Restated Credit Agreement
dated as of March 28, 2017, among Texas Oil Chemical Co. II, Inc. as Borrower, and Bank of America, N.A., as Lender. |
| 99.2 |
Amended and Restated Credit Agreement dated October 1, 2014, between Texas Oil Chemical Co. II, Inc. and certain subsidiaries and Bank of America, N.A. as administrative agent (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K filed on October 3, 2014 (file No. 001-33926)) |
amount of information about the Company, including financial and
other information for investors. The Company strongly encourages
investors to visit its website from time to time, as information
is updated and new information is posted.
About Trecora Resources (NYSE:TREC)
Trecora Resources, formerly Arabian American Development Company, is engaged in manufacturing of specialty petrochemical products and synthetic waxes, and providing custom processing services. The Company operates through two segments: manufacturing of various specialty petrochemical products and manufacturing of specialty synthetic waxes. The specialty petrochemical products segment operates through South Hampton Resources, Inc. (SHR). The specialty synthetic wax segment operates through Trecora Chemical, Inc. (TC). SHR owns and operates a specialty petrochemical facility that produces hydrocarbons and other petroleum-based products, including isopentane, normal pentane, isohexane and hexane. TC produces specialty polyethylene and poly alpha olefin waxes, and provides custom processing services. TC provides custom manufacturing, distillation, blending, forming, and packaging of finished and intermediate products, and wax products for coatings, hot melt adhesives and lubricants. Trecora Resources (NYSE:TREC) Recent Trading Information
Trecora Resources (NYSE:TREC) closed its last trading session down -0.20 at 11.05 with 23,394 shares trading hands.
