Item 1.01. Entry into a Material Definitive Agreement.
On June 9, 2021, Douglas Dynamics, Inc. (the "Company"), as guarantor, and its
wholly-owned subsidiaries, Douglas Dynamics, L.L.C. ("DDI LLC" or the "Term Loan
Borrower"), Fisher, LLC ("Fisher"), Trynex International LLC ("Trynex"),
Henderson Enterprises Group, Inc. ("Enterprises"), Henderson Products, Inc.
("Products"), and Dejana Truck & Utility Equipment Company, LLC ("Dejana",
together with DDI LLC, Fisher, Trynex, Enterprises and Products, the "Revolving
Loan Borrowers", and together with DDI LLC in its capacity as the Term Loan
Borrower, the "Borrowers"), as borrowers, entered into a Credit Agreement
(following such time as it was amended by the Amendment No. 1 (as defined
below), the "Credit Agreement") with the banks and financial institutions listed
in the Credit Agreement, as lenders, JPMorgan Chase Bank, N.A., as
administrative agent, J.P. Morgan Chase Bank, N.A. and CIBC Bank USA, as joint
lead arrangers and joint bookrunners, CIBC Bank USA, as syndication agent, and
Bank of America, N.A. and Citizens Bank, N.A., as co-documentation agents.
The Credit Agreement provides for a senior secured term loan to the Term Loan
Borrower in the amount of $225.0 million and a senior secured revolving credit
facility available to the Revolving Loan Borrowers in the amount of $100.0
million, of which $10.0 million will be available in the form of letters of
credit and $15.0 million will be available for the issuance of short-term
swingline loans. The Credit Agreement also allows the Revolving Loan Borrowers
to request increases to the revolving commitments and/or incremental term loans
in an aggregate amount not in excess of $175.0 million (the "Revolving
Commitment Increase Option"), subject to specified terms and conditions. The
final maturity date of the Credit Agreement is June 9, 2026.
On January 5, 2023, the Company entered into that certain Amendment No. 1 to
Credit Agreement and Revolving Credit Commitment Increase Supplement ("Amendment
No. 1") by and among the Company, the Borrowers, the financial institutions
listed in Amendment No. 1 as lenders, and JPMorgan Chase Bank, N.A., as
administrative agent, which amended the Credit Agreement and pursuant to which,
among other things, (i) the Revolving Loan Borrowers exercised a portion of the
Revolving Commitment Increase Option and increased the revolving commitment
under the Credit Agreement by $50.0 million for a total of $150.0 million in the
aggregate and (ii) the London Interbank Offered Rate pricing option under the
Credit Agreement was replaced with a Term SOFR Rate pricing option.
Pursuant to Amendment No. 1, the Credit Agreement provides that the senior
secured term loan facility will bear interest at (i) the Term SOFR Rate for the
applicable interest period plus (ii) a margin ranging from 1.375% to 2.00%,
depending on DDI LLC's Leverage Ratio. The Credit Agreement provides that the
Revolving Loan Borrowers have the option to select whether the senior secured
revolving credit facility borrowings will bear interest at either (i)(a) the
Term SOFR Rate for the applicable interest period plus (b) 0.10% plus (c) a
margin ranging from 1.375% to 2.00%, depending on DDI LLC's Leverage Ratio, or
(ii) a margin ranging from 0.375% to 1.00% per annum, depending on DDI LLC's
Leverage Ratio, plus the greatest of (which if the following would be less than
1.00%, such rate shall be deemed to be 1.00%) (a) the Prime Rate (as defined in
the Credit Agreement) in effect on such day, (b) the NYFRB Rate (as defined in
the Credit Agreement) plus 0.50% and (c) the Term SOFR Rate for a one month
interest plus 0.10% (the "Adjusted Term SOFR Rate"). If the Adjusted Term SOFR
Rate for the applicable interest period is less than zero, such rate shall be
deemed to be zero for purposes of calculating the foregoing interest rates in
the Credit Agreement.
The foregoing summary of the material terms of the Credit Agreement and
Amendment No. 1 is not complete and is qualified in its entirety by reference to
(1) the Credit Agreement, which was filed as Exhibit 10.1 to the Current Report
on Form 8-K filed by the Company with the Securities and Exchange Commission
(the "SEC") on June 14, 2021, and (2) Amendment No. 1, which is filed as Exhibit
10.1 to this Current Report on Form 8-K, each of which are incorporated herein
by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement.
The information contained in Item 1.01 in this Current Report on Form 8-K is
hereby incorporated into this Item 2.03 by reference.
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Item 9.01. Financial Statements and Exhibits
(a) Not applicable.
(b) Not applicable.
(c) Not applicable
(d) Exhibits. The following exhibits are being filed herewith:
(10.1) Amendment No. 1 to Credit Agreement and Revolving Credit Commitment
Increase Supplement, dated as of January 5, 2023, among Douglas Dynamics,
L.L.C., Fisher, LLC, Trynex International LLC, Henderson Enterprises
Group, Inc., Henderson Products, Inc., and Dejana Truck & Utility
Equipment Company, LLC, Douglas Dynamics, Inc., the banks and financial
institutions listed therein, as lenders, and JPMorgan Chase Bank, N.A.,
as administrative agent (which includes the marked Credit Agreement as
Exhibit A thereto).
(104) Cover Page Interactive Data File (the Cover Page Interactive Data File is
embedded within the Inline XBRL document)
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