Tredegar Corporation
04/22/2024 | Press release | Distributed by Public on 04/22/2024 14:39
Material Agreement - Form 8-K
Item 1.01. Entry into a Material Definitive Agreement.
On April 16, 2024, Tredegar Corporation (the "Company"), as borrower, and certain of the Company's material domestic subsidiaries, as guarantors (the "Guarantors"), entered into Amendment No. 4 (the "Fourth Amendment") to the Second Amended and Restated Credit Agreement dated June 29, 2022 (as previously amended, the "Amended Credit Agreement"), among JPMorgan Chase Bank, N.A., as administrative agent (the "Agent"), Citizens Bank, N.A. and PNC Bank, National Association, as co-syndication agents, and Bank of America, N.A., U.S. Bank National Association and Wells Fargo Bank, National Association, as co-documentation agents, and the other lenders party thereto (collectively, the "Lenders").
The material terms of the Fourth Amendment include the following:
•The outside date in the "ABL Adjustment Date" definition was changed from March 31, 2025 to September 30, 2025.The ABL Adjustment Date is the date that the Company's maximum borrowing under the Amended Credit Agreement will be reduced from $180 million to $125 million, which with the Fourth Amendment is the earlier of the closing of the Flexible Packaging Films (also referred to as "Terphane") sale or September 30, 2025.
•The monthly minimum Consolidated EBITDA (as defined in the Amended Credit Agreement) covenant levels were extended to September 2025 to accommodate the extension of the ABL Adjustment Date (as defined in the Amended Credit Agreement).
•From the closing date of the Fourth Amendment until the ABL Adjustment Date and, following the ABL Adjustment Date, upon the request of the Agent, from and after the date on which Availability (as defined in the Amended Credit Agreement) is less than 20% of the Aggregate Commitment (as defined in the Amended Credit Agreement) until Availability remains greater than 20% of the Aggregate Commitment for a period of 30 consecutive calendar days, the Company must provide the Agent a Borrowing Base Certificate (as defined in the Amended Credit Agreement) and supporting information on a weekly basis.
The Company and its affiliates regularly engage the Lenders to provide other banking services. All of these engagements are negotiated at arm's length.
The foregoing description of the Fourth Amendment is not complete and is qualified in its entirety by reference to the entire Fourth Amendment, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference.