BOISE CASCADE CO: Entering into a Material Definitive Agreement, Creating a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (Form 8-K)
Section 1.01 Entering into a Material Definitive Agreement.
Amendment to the senior secured asset-backed credit facility
The Amendment extends the maturity date of the Credit Agreement to the earliest of the following dates: (i)
The amendment also changes the interest rates under the credit agreement. Previously, in the credit agreement, interest rates were based, at the option of the company, either on the LIBOR rate or on the base rate, as defined in the credit agreement, plus a spread on the index. The Amendment replaces the LIBOR rate with a simple daily SOFR and a forward SOFR. Both SOFR options include a credit spread adjustment of 0.10%. The applicable spreads for the credit agreement have not changed. In addition, the Amendment reduced the unused line charge that the Company will pay from 0.25% per annum to 0.20% per annum.
The amendment also changes the borrowing base and certain components of the borrowing base, which is used to determine the amount available under the revolving credit facility under the amended agreement. The Amended Agreement contains a requirement that we meet a Fixed Cost Coverage Ratio (FCCR) of 1:1, applicable only if Excess Availability (as defined in the Amended Agreement) falls below 10% of the Cap line. The Amended Agreement permits us to pay dividends only if, at the time of payment (i) no default has occurred or is continuing (or would result from such payment) under the Amended Agreement, and (ii) (x) the pro forma Excess Availability (as defined in the Amended Agreement) is equal to or greater than 20% of the Line Cap or (y) the pro forma Excess Availability is equal to or greater than 15% of the Line Cap line and our fixed charge coverage ratio is greater than or equal to 1:1 on a pro forma basis.
The above summary of the amendment is qualified in its entirety against the full text of the amendment, which will be filed as an attachment to the company’s Form 10-Q for the third quarter of 2022.
Item 2.03 Creation of a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant.
The information set out in point 1.01 above is incorporated by reference in this point 2.03.
Item 9.01 Financial statements and supporting documents.
The following exhibits are provided as part of this current report on Form 8-K:
Exhibit No. Description of Exhibit 101 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. 104 The cover page from this Current Report on Form 8-K, formatted as Inline XBRL.
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