Daily News: February 22, 2018

JPMorgan, PNC Agent Amendments to Cooper Tire Facilities

Cooper Tire & Rubber amended its credit facility and its receivables purchase agreement.

According to a related 8-K filing, JPMorgan agented the changes to the company’s revolving credit facility, which included:

  • Extending the maturity date to February 15, 2023
  • Modifying the definition of applicable rate
  • Modifying certain negative covenants to permit additional indebtedness and liens by foreign subsidiaries of the company
  • Modifying the asset sale covenant
  • Increasing the basket for permitted dividends

Concurrently, PNC Bank amended the company’s receivables purchase agreement to, among other things:

  • Extend the maturity date from May 27, 2018 to February 12, 2021
  • Modify various provisions relating to letters of credit
  • Eliminate the concept of a minimum usage amount

The second A&R receivables purchase agreement has a purchase limit of $150 million. The interest rate spread of the receivables facility is between 0.50% and 4.00% based on interest rate type, and the servicing fee of the receivables facility is 1.00%.