Business Context and Reporting Period
Company: American Vanguard Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: October 7, 2004
Reporting Period: Event date of October 7, 2004 (execution of agreement)
Key Financial Metrics
This filing reports the execution of a new credit facility rather than periodic financial performance metrics. Specific revenue, profit, cash flow, or margin data are not provided in this document.
| Metric | Value |
|---|---|
| Total Credit Facility | $80 million |
| Revolving Line of Credit | $45 million |
| Term Loan | $35 million |
| Security Status | Fully-secured |
| Borrower | AMVAC Chemical Corporation (wholly-owned subsidiary) |
Material Changes
The company entered into an Amended and Restated Credit Agreement on October 7, 2004, replacing its previous credit facility with Bank of the West. The new facility is provided by a syndicate of lenders led by Bank of the West, with Harris Trust and Savings Bank, First Bank & Trust, and Greenstone Farm Credit Services as participants.
Outlook, Risks, and Unusual Items
- Interest Rates: Loans bear interest at the prime rate or adjusted LIBOR plus margins and commitment fees, which are dependent on the company's consolidated funded debt ratio.
- Repayment Terms:
- Term Loan: Principal payable in equal quarterly installments starting November 30, 2004, with a final balloon payment on the maturity date.
- Revolving Loan: Principal must be repaid no later than October 7, 2009.
- Guarantees: American Vanguard Corporation and certain other subsidiaries act as guarantors for the facility.
Investor Verification Checklist
- Verify the specific interest rate margins and commitment fees applicable to the current consolidated funded debt ratio.
- Confirm the exact maturity date for the $35 million term loan, which is not explicitly stated in the text.
- Review the full text of the press release (Exhibit 99.1) for additional management commentary on the strategic rationale for refinancing.
- Check subsequent filings for the initial drawdown amounts and the impact on the company's leverage ratios.