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| LAWS > SEC Filings for LAWS > Form 8-K on 10-Nov-2008 | All Recent SEC Filings |
10-Nov-2008
Entry into a Material Definitive Agreement, Creation of a Direct Fina
On November 10, 2008, Lawson Products, Inc. (the "Company") announced that it had entered into a First Amended and Restated Credit Agreement (the "Credit Facility") with Bank of America, N.A. The Credit Facility amends and restates the credit facility entered into by the Company and certain of its subsidiaries on March 27, 2001.
The Credit Facility provides for a total commitment of $75 million in the form of revolving loans and letters of credit and matures on November 7, 2011. The interest rate for Credit Facility will initially bear interest at either LIBOR plus 0.625% or the prime rate minus 1.000%, as elected by the Borrowers. The interest rate will be adjusted following the Closing Date based on the Company's ratio of consolidated total debt to EBITDA calculated on the basis of the Company's most recent annual or quarterly financial statements. Except for a pledge of 65% of the capital stock of the Company's subsidiary, Lawson Products, Inc. (Ontario) ("Lawson Canada") and a lien against any intercompany loan by a Borrower to Lawson Canada, the Borrowers' obligations under the Credit Facility are unsecured. Each Borrower has agreed that it shall not place any lien on its accounts receivable and inventory.
The Credit Facility contains customary representations, warranties, covenants and events of default. The Credit Facility also contains certain financial covenants, including but not limited to leverage and coverage ratios and minimum shareholder equity requirements, to be calculated on a quarterly basis.
A copy of the Credit Facility is attached to, and is incorporated by reference into, this Current Report on Form 8-K as Exhibit 10.1. The foregoing description of the Credit Facility is qualified in its entirety by reference to the full text of the Credit Facility.
The information set forth above in Item 1.01 of this Current Report on Form 8-K with respect to the Credit Facility is incorporated by reference into this Item 2.03.
(d) Exhibits.
10.1 First Amended and Restated Credit Agreement dated as of November 7, 2008.
99.1 Press Release dated November 10, 2008
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