The Container Store entered into a fifth amendment on its credit facility, dated April 6, 2012, with JPMorgan Chase Bank. Among other things, the amendment extends the maturity date of the senior secured term loan to September 14, 2012.
According to a related 8-K filing, J.P. Morgan Securities, Barclays Bank, Morgan Stanley Senior Funding and Wells Fargo Securities served as joint lead arrangers and joint bookrunners.
The amendment also decrease the applicable interest rate margin to 5.00% for LIBOR loans and 4.00% for base rate loans and, beginning from the date a compliance certificate is delivered to the administrative agent for the fiscal year ending March 30, 2019, allows the applicable interest rate margin to step down to 4.75% for LIBOR loans and 3.75% for base rate loans upon achievement of a consolidated leverage ratio equal to or less than 2.75:1.00. Further, it imposes a 1.00% premium if a voluntary prepayment is made from the proceeds of a repricing transaction within 12 months after the effective date.
In connection with the fifth amendment, the company repaid $20 million of the outstanding loans under the senior secured term loan facility, which reduces the aggregate principal amount of the senior secured term loan facility to $272.5 million. The company drew down a net amount of approximately $10 million on its revolving credit facility in connection with the closing of the fifth amendment.
As a result of the fifth amendment, for fiscal 2018, the company expects a reduction to interest expense of approximately $2 million, or $0.03 per share, for a total interest expense of approximately $28 million, and debt extinguishment costs of approximately $2 million.