Business Context and Reporting Period
This Form 8-K was filed by Lindblad Expeditions Holdings, Inc. on March 7, 2016. The report details the entry into a material definitive agreement involving the amendment of the company's senior secured credit facility.
Key Financial Metrics and Debt Structure
The filing outlines the terms of a Restated Credit Facility entered into with Credit Suisse. Key financial terms include:
- Term Loan Facility: Existing $175.0 million senior secured first lien term loan.
- Revolving Credit Facility: New $45.0 million senior secured incremental revolving credit facility, including a $5.0 million letter of credit subfacility.
- Interest Rates: Term loan bears LIBOR (1.00% floor) + 4.50%. Revolving facility bears LIBOR + 4.00% or Base Rate + 3.00%.
- Fees: 0.5% annual commitment fee on undrawn revolving amounts.
- Collateral: Obligations are secured by substantially all company assets.
- Outstanding Borrowings: As of March 7, 2016, there were no borrowings under the new revolving facility.
Material Changes Versus Prior Period
The primary material change is the addition of a $45.0 million incremental revolving credit facility to the existing $175.0 million term loan structure. The financial and operational covenants remain the same as the original credit agreement.
Outlook, Risks, and Management Commentary
Use of Proceeds: Borrowings under the revolving facility are designated for general corporate and working capital purposes, as well as related fees and expenses.
Maturity Dates: The revolving credit facility matures on May 8, 2020, and the term loan facility matures on May 8, 2021.
Risks and Contingencies: The filing notes that the company's obligations are secured by substantially all assets. The summary is qualified by reference to the full text of the Restated Credit Agreement filed as Exhibit 10.1.
Investor Verification Checklist
- Verify the full text of the Second Amended and Restated Credit Agreement (Exhibit 10.1) for specific covenant details.
- Confirm the current utilization status of the $175.0 million term loan facility.
- Monitor the company's ability to meet the 1.00% LIBOR floor and associated interest rate spreads.
- Review future filings for any drawdowns on the new $45.0 million revolving facility.