8-KThe WireStrategic
Material Agreement · New Debt / Obligation
Filed Dec 20, 2019 · 6y ago · Accession 0001193125-19-321137
Plain English
Material event — a significant development the company must disclose promptly.
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Filing text
View original ↗UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 20, 2019
DUCOMMUN INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware
001-08174
95-0693330
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
200 Sandpointe Avenue, Suite 700,
Santa Ana, California
92707-5759
(Address of principal executive offices)
(Zip Code)
Registrants telephone number, including area code (657)
335-3665
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Common Stock, $.01 par value per share
DCO
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the
Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01 Entry Into a Material Definitive Agreement.
On December 20, 2019 (the Closing Date ) Ducommun Incorporated, a Delaware corporation ( Ducommun ) and
certain of its subsidiaries entered into an Incremental Term Loan Lender Joinder Agreement and Additional Credit Extension Amendment (the Amendment ) to Ducommuns Amended and Restated Credit Agreement with Bank of America,
N.A., as administrative agent, swingline lender and issuing bank, and the lender parties thereto dated November 21, 2018 (the Credit Agreement ).
The Amendment provides for (1) an incremental $140 million senior secured term loan facility (the Term Loan A
Facility ) maturing on December 20, 2024, and (2) an extension of the maturity date of the $100 million senior secured revolving credit facility (the Revolving Credit Facility ) to December 20, 2024.
Ducommun intends to use the proceeds of (1) the Term Loan A Facility to repay the existing amount outstanding on its existing revolving credit facility, repay a portion of the existing term facility and fees and expenses related to the
Amendment and (2) any future borrowings under the Revolving Credit Facility for general corporate purposes.
The initial variable
interest rate on amounts outstanding under the Term Loan A Facility will be LIBOR plus 2.00%, amortizing 1.25% quarterly. The Amendment modifies the interest rate on amounts outstanding under the Revolving Credit Facility to match the interest rates
applicable to the Term Loan A Facility, with the modified interest rates to increase or decrease based upon the following pricing tiers and the applicable Consolidated Total Net Leverage Ratio:
Pricing Tier
Consolidated Total
Net Adjusted Leverage Ratio
Eurodollar Rate
Loans
Base Rate Loans
I
> 4.50 to 1.0
2.50
%
1.50
%
II
< 4.50 to 1.0 but > 4.00 to 1.0
2.25
%
1.25
%
III
< 4.00 to 1.0 but > 3.00 to 1.0
2.00
%
1.00
%
IV
< 3.00 to 1.0 but > 2.00 to 1.0
1.75
%
0.75
%
V
< 2.00 to 1.0
1.50
%
0.50
%
The Amendment does not otherwise modify the terms of the existing Credit Agreement. For a description of the
Credit Agreement, see Ducommuns Current Report on Form 8-K filed with the Securities and Exchange Commission on November 26, 2018, which description is incorporated herein by reference.
The foregoing description of the Amendment is not intended to be complete and is qualified in its entirety by reference to the full text of
the Amendment, a copy of which is filed as Exhibit 10.1 hereto and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
See Item
1.01 above, which is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
10.1
Incremental Term Loan Lender Joinder Agreement and Additional Credit Extension Amendment, dated as of December
20, 2019, by and among Ducommun Incorporated, as Borrower, the subsidiaries of the Borrower party thereto, as Guarantors, Bank of America, N.A., as Administrative Agent, Swingline Lender and an L/C Issuer, and the lender party thereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
DUCOMMUN INCORPORATED
(Registrant)
Date: December 20, 2019
By:
/s/ Christopher D. Wampler
Christopher D. Wampler
V.P., Interim Chief
Financial Officer and Treasurer, and Controller and Chief Accounting Officer
Filing details
- Company
- DUCOMMUN INC /DE/
- Ticker
- DCO
- CIK
- 30305
- Form type
- 8-K
- Filing date
- Dec 20, 2019
- Report date
- Dec 20, 2019
- Document
- d834392d8k.htm
- Size
- 137 KB