Item 1.01 Entry into a Material Definitive Agreement
Effective as of January 28, 2009, Sunair Services Corporation (the "Company")
entered into a third amendment ("Third Amendment") to its credit agreement dated
as of June 7, 2005 (as amended, the "Credit Agreement"), among the Company, each
of its domestic subsidiaries, the several lenders from time to time parties
thereto, and Wachovia Bank, National Association as administrative agent for the
lenders.
Among other items, the Third Amendment to the Credit Agreement extended the
maturity date of the Credit Agreement to January 2, 2010 from January 7, 2009
and reduced the maximum capacity under the Credit Agreement from $11.75 million
on September 30, 2008 to $7.75 million on December 31, 2008, $7.5 million on
March 31, 2009, to $6.75 million on June 30, 2009 and $5.5 million on
September 30, 2009. The Third Amendment reduced the committed amount under the
letter of credit facility, which is part of the Credit Agreement, from
$3 million to $1 million and modified the financial covenants relating to
consolidated EBITDA, the leverage ratio and the fixed coverage charge ratio,
which amendments were effective as of September 30, 2008.
The description of the Third Amendment to the Credit Agreement set forth
above is qualified in its entirety by reference to the actual terms of the Third
Amendment to the Credit Agreement, which is attached hereto as Exhibit 10.1 and
is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Exhibit Description
10.1 Third Amendment to the Credit Agreement dated as of January 22, 2009
and effective as of January 28, 2009 by and among Sunair Services
Corporation, its domestic subsidiaries, the lenders parties thereto
and Wachovia Bank, National Association as administrative agent for
the lenders.
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