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| MDCI > SEC Filings for MDCI > Form 8-K on 31-May-2012 | All Recent SEC Filings |
31-May-2012
Entry into a Material Definitive Agreement, Financial Statements an
Waiver in Respect of Agreements Governing Principal Credit Facilities
On May 31, 2012, Medical Action Industries Inc., a Delaware Corporation (the "Company"), entered into Waiver No. 2 (the "Waiver") to its Amended and Restated Credit Agreement, dated as of August 27, 2010, with various lenders (the "Lenders") and JPMorgan Chase Bank, N. A. as Administrative Agent (as amended, the "Credit Agreement").
The Waiver, which is dated as of May 31, 2012, is being furnished as an exhibit to this Form 8-K, and is incorporated by reference into this Item 1.01.
Amongst other matters, which are fully described in the exhibit, the Lenders agreed to waive certain defaults under the Credit Agreement that the Company expects would otherwise occur with respect to the Maximum Leverage Ratio and Fixed Charge Coverage Ratio. The Waiver expires on the earliest of: (i) June 29, 2012; (ii) a failure by the Company to provide weekly cash flow projections on a rolling thirteen-week basis; (iii) any date upon which the aggregate Revolving Credit Exposure exceeds $21,670,000; and (iv) the occurrence or identification of any other Event of Default under the Credit Agreement.
The Waiver also provides that the Applicable Margin and Unused Fee Rate grids
set forth in the Credit Agreement are replaced with (i) new Applicable Margins
of 4.00% for Adjusted LIBOR Loans and 3.00% for Alternate Base Rate Loans and
(ii) a new Unused Fee Rate of 0.625%.
(d) Exhibits.
10.1 Waiver No. 2 to Amended and Restated Credit Agreement, dated as of May 31, 2012, by and among Medical Action Industries Inc., various lenders and JPMorgan Chase Bank, N.A., as Administrative Agent.
The information in this Form 8-K is being furnished under Item 12 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of such Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
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