Generac Holdings Inc
GNRC
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GENERAC HOLDINGS INC. : Entry into a Material Definitive Agreement, Financial Statements and Exhibits (form 8-K)

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06/14/2018 | 01:21 pm

Item 1.01 Entry into a Material Definitive Agreement







Amendment of Term Loan




On June 8, 2018, Generac Power Systems, Inc. (the "Borrower"), a wholly owned
subsidiary of Generac Holdings, Inc. (the "Company"), amended that certain Term
Loan Credit Agreement dated as of February 9, 2012 (as amended and/or restated,
supplemented, or otherwise modified from time to time, the "Term Loan Credit
Agreement"), which amendment modified the pricing for the term loan thereunder
(the "Term Loan") by favorably reducing certain applicable margin rates, among
other items. Previously, the Term Loan accrued interest at a per annum rate
equal to LIBOR plus an applicable margin of 2.00%, and a LIBOR floor of 0.75%.
Effective with this amendment, the Term Loan will accrue interest at a per annum
rate equal to LIBOR plus an applicable margin of 1.75%, and a LIBOR floor of
0.75%. Concurrent with this amendment, the Borrower is also paying down $50.0
million
on the existing balance of $929.0 million for a new outstanding balance
of $879.0 million. The Term Loan amendment is attached hereto as Exhibit 10.1
and incorporated herein by reference. The foregoing summary does not purport to
be complete and is qualified in its entirety by reference to such exhibit.



Amendment and Restatement of ABL Revolving Credit Facility



On June 12, 2018, the Borrower entered into a Second Amended and Restated Credit
Agreement (as amended and/or restated, supplemented, or otherwise modified from
time to time, (the "ABL Credit Agreement"), among the Borrower, Generac Holdings
UK Limited
, as U.K. Borrower, certain domestic subsidiaries of the Borrower,
Generac Acquisition Corp., the lenders party thereto, Bank of America, N.A., as
Administrative Agent, JPMorgan Chase Bank, N.A., as syndication agent, and Wells
Fargo Bank, National Association
, as Documentation Agent.



The ABL Credit Agreement provides for a three-year extension of the maturity
date in respect of the senior secured ABL revolving credit facility provided
thereunder (the "ABL Facility"), as well as an increase in the size of the ABL
Facility from $250.0 million to $300.0 million. Up to $50.0 million of the ABL
Facility can be used by the U.K. Borrower for borrowings in U.S. Dollars, Euros,
and/or Pound Sterling. Subject to the terms of the ABL Credit Agreement, the
extended maturity date of the ABL Facility is June 12, 2023. The ABL Credit
Agreement further provides for an increase in the Letter of Credit sublimit
under the ABL Facility from $25.0 million to $75.0 million, and a favorable
pricing reduction in certain applicable interest rates, among other items.
Borrowings under the ABL Facility previously bore interest at a per annum rate
based upon LIBOR plus an applicable margin of between 1.25% and 1.75%, but will
now bear interest at a per annum rate based upon LIBOR plus an applicable margin
of between 1.125% and 1.375%, in each case subject to adjustments based upon
average availability under the ABL Facility.



The ABL Credit Agreement is attached hereto as Exhibit 10.2 and incorporated
herein by reference. The foregoing summary does not purport to be complete and
is qualified in its entirety by reference to such exhibit.



Item 9.01 Financial Statements and Exhibits







(d) Exhibits



Exhibit No. Description

10.1 2018 Replacement Term Loan Amendment, dated as of June 8, 2018, to
that certain Credit Agreement, dated as of February 9, 2012, as amended
and restated as of May 30, 2012, as further amended and restated as of
May 31, 2013, as amended by the First Amendment dated as of May 18,
2015
, as amended by the Replacement Term Loan Amendment dated as of
November 2, 2016, as amended by the Replacement Term Loan Amendment
dated May 11, 2017, and as amended by the Replacement Term Loan
Amendment dated December 8, 2017, among Generac Power Systems, Inc.,
Generac Acquisition Corp., the lenders party thereto, JPMorgan Chase
Bank, N.A
., as Administrative Agent and the other agents named
therein.

10.2 Second Amended and Restated Credit Agreement, dated as of June 12,
2018
, among Generac Power Systems, Inc., its Subsidiaries listed as
Borrowers on the signature pages thereto, Generac Acquisition Corp., the
lenders party thereto, Bank of America, N.A. as Administrative Agent,
JPMorgan Chase Bank, N.A. as Syndication Agent, and Wells Fargo Bank,
National Association
as Documentation Agent.




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