Entegris amended its ABL credit and guaranty agreement dated April 30, 2014 with Goldman Sachs Bank as administrative agent.
According to a related 8-K filing, the amendment, among other things:
- Reduces the interest rate spreads applicable to loans under the ABL facility by 0.25%. After giving effect to such reduction, loans under the ABL facility will bear interest at a rate of LIBOR plus a spread of between 1.25% to 1.75%, with a base rate floor of 0.0%, or a prime rate plus a spread of between 0.25% to 0.75%, with a base rate floor of 1.00%, in each case depending on excess availability
- Extends the final maturity of the facility from April 30, 2019 to March 1, 2023, provided that, on January 28, 2021, the company’s term loan credit agreement or certain other indebtedness maturing prior to May 31, 2023 remains outstanding. If that is the case, the ABL facility will mature on January 28, 2021, unless excess availability greater than $7.5 million under the ABL facility, plus the amount of cash and cash equivalents of the company and its restricted subsidiaries, is at least 125% of the aggregate outstanding principal amount of the term loan credit agreement and such other indebtedness, and thereafter requires that the company maintain such ratio at all times during which the ABL facility remains outstanding
- Increases the maximum secured net leverage ratio that the company must meet to incur indebtedness and liens from 2.00:1.00 to 2.75:1.00
- Increases the thresholds for judgments and cross defaults to material indebtedness from $50 million to $75 million