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| HEW > SEC Filings for HEW > Form 8-K on 16-Oct-2009 | All Recent SEC Filings |
16-Oct-2009
Entry into a Material Definitive Agreement, Creation of a Direct Financial
On October 9, 2009, Hewitt Associates L.L.C. (the "Company") entered into a three-year, $250 million unsecured revolving credit agreement ("Credit Agreement") by and among the Company, as borrower, Hewitt Associates, Inc. (the Registrant), as guarantor, and the lenders party thereto. This credit facility contains a $25 million sub-limit for the issuance of letters of credit. The Credit Agreement is maintained for general corporate purposes and replaces the Company's previous $200 million, five-year credit agreement dated May 23, 2005, as amended.
Borrowings initially provided under this credit facility would be at the London
Interbank Offered Rate ("LIBOR") plus 2.5% or an alternate base rate plus 1.5%.
The alternate base rate is the greater of (i) 0.5% plus the federal funds rate,
(ii) 1% plus the one-month LIBOR rate or (iii) the prime rate. The interest rate
will change depending on the leverage ratio of the Registrant, and range from
2.00% to 3.00% over LIBOR or 1.00% to 2.00% over the alternate base rate.
The Credit Agreement requires the Company to maintain (1) a leverage ratio not exceeding 2.50 to 1.00 and (2) an interest coverage ratio not less than 2.00 to 1.00 and is subject to other conditions and covenants as contained in the Credit Agreement. The facility is subject to annual commitment fees ranging from 0.30% to 0.50% per annum times the average daily unused commitments.
The Credit Agreement expires on October 9, 2012. At October 9, 2009, there were no borrowings and $10.4 million of letters of credit issued under the credit facility.
This summary of the terms of the Credit Agreement is qualified in its entirety by the text of the Credit Agreement, a copy of which is attached to this Form 8-K as exhibit 99.1, and is incorporated herein by reference.
The information contained in Item 1.01. above is incorporated herein by reference.
(d) Exhibits.
99.1 Credit Agreement by and among Hewitt Associates L.L.C., as borrower, Hewitt Associates, Inc., as guarantor, and the lenders party thereto.
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