Business Context and Reporting Period
Company: Northwest Pipe Company (NWPX Infrastructure, Inc.)
Filing Type: Form 8-K (Current Report)
Date of Report: October 25, 2018
Event: Entry into a Material Definitive Agreement (Credit Agreement) and creation of a direct financial obligation.
Key Financial Metrics
This filing details a new credit facility rather than periodic operating results. Key financial terms include:
- Total Revolver Commitment: Up to $60 million (subject to borrowing base).
- Outstanding Borrowings (as of Oct 25, 2018): $6.0 million.
- Available Borrowing Capacity (as of Oct 25, 2018): $32.5 million.
- Interest Rate: Daily 3-month LIBOR plus 1.5% to 2.0%.
- Unused Line Fee: 0.25% to 0.375% on the unused portion of the commitment.
- Maturity Date: October 25, 2023.
Note: The filing does not provide revenue, profit, cash flow, or margin data for the reporting period.
Material Changes
The primary material change is the establishment of a new $60 million revolving credit facility with Wells Fargo Bank, N.A., replacing or supplementing prior financing arrangements. The agreement is secured by a security interest in substantially all assets of the Company and its subsidiaries.
Guidance, Risks, and Covenants
- Covenants: The agreement includes customary affirmative and negative covenants, including restrictions on incurring liens, indebtedness, and certain asset acquisitions/dispositions.
- Financial Maintenance: The Company must maintain a specified fixed charge coverage ratio upon certain triggers.
- Reporting: The Company is required to regularly provide financial information to the lender.
- Collateral: Obligations are secured by substantially all assets of the registrant and its subsidiaries.
Investor Verification Checklist
- Verify the specific calculation methodology for the "borrowing base" to understand the true availability of the $60 million commitment.
- Review the full text of the Credit Agreement (Exhibit 10.1) for specific definitions of "fixed charge coverage ratio" triggers.
- Confirm the impact of the new security interest on existing or future debt structures.
- Monitor future filings for the Company's ability to meet the fixed charge coverage ratio requirements.