PACKAGING CORP OF AMERICA: conclusion of a definitive agreement, financial statements and supporting documents (form 8-K)

0


Article 1.01. The conclusion of an important definitive agreement.

At June 8, 2021, Packing Company of America (“PCA”) has entered into a revolving credit agreement (the “New Revolving Credit Agreement”) with the lenders and agents named therein. The New Revolving Credit Agreement is attached hereto as Exhibit 10.1, which is incorporated by reference herein. The description below does not claim to be complete and is qualified in its entirety by reference to the full text of the new revolving credit agreement. The new credit agreement replaces the old PCA credit agreement, dated August 29, 2016 (the “Old Credit Agreement”), which was described in Item 1.01 of the PCA’s current report on Form 8-K filed with the Security and Trade Commission at
September 1, 2016. The term of the old credit agreement would have expired on
August 29, 2021.

The new revolving credit agreement is a $ 350 million five year unsecured revolving credit facility available for general business borrowing. Except around $ 23.5 million letters of credit, no borrowings were outstanding under the old credit agreement and no borrowings were outstanding under the new revolving credit agreement. The loans under the New Revolving Credit Agreement are guaranteed by the main subsidiaries of PCA.

Loans under the New Revolving Credit Agreement bear interest at the LIBOR rate or the prime rate plus the applicable margin described below. The agreement contains customary LIBOR replacement rate provisions. The applicable margin is determined on the basis of the public ratings of the long-term senior unsecured debt of PCA or the gross leverage ratio of PCA and ranges from (a) in the case of LIBOR loans, from 0.900% to 1.500% and (b) in the case of basic loans interest rate loans, from 0.000% to 0.500% for revolving credits.

The new revolving credit agreement contains customary and negative covenants, including limitations on liens, mergers and consolidations, sales of assets and debts of subsidiaries. The New Revolving Credit Agreement includes two financial covenants, a maximum leverage ratio and a minimum interest coverage ratio, each calculated on a consolidated basis.

PCA can prepay loans under the new revolving credit agreement at any time without premium or penalty.

Article 9.01. Financial statements and supporting documents.

(D) Exhibitions


10.1      Credit Agreement, dated June 8, 2021 between Packaging Corporation of
        America and the lenders and agents named therein

104     Cover Page Interactive Data File (embedded within the Inline XBRL
        document)

————————————————– ——————————

© Edgar online, source Previews



Source link

Share.

About Author

Leave A Reply