Archrock, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Archrock, Inc. on November 8, 2019. The filing discloses the entry into a Material Definitive Agreement, specifically Amendment No. 2 to the Company's existing Credit Agreement dated March 30, 2017.
Key Financial Metrics and Debt Structure
The filing does not provide specific revenue, profit, cash flow, or margin data. The primary financial impact relates to the restructuring of the Company's revolving credit facility:
- Maturity Extension: The scheduled maturity date of the revolving credit facility was extended from March 30, 2022, to November 8, 2024.
- Contingent Maturity: The maturity date may revert to June 3, 2022, if any portion of the 2014 Notes remains outstanding and has not been repaid or refinanced by that date.
- Interest Rate Margins: Applicable margins for borrowings were adjusted based on a total leverage ratio pricing grid:
- Eurodollar Loans: Ranges from 2.00% to 2.75%.
- ABR Loans: Ranges from 1.00% to 1.75%.
Material Changes Versus Prior Period
The material change is the amendment of the credit terms compared to the original 2017 agreement. The extension of the maturity date provides additional time for debt repayment or refinancing, while the revised pricing grid alters the cost of borrowing based on the Company's leverage ratio.
Guidance, Outlook, and Risks
The filing explicitly states that the agreement is not intended to provide information about the Company's business or operations beyond the terms of the amendment. Management commentary is limited to the mechanics of the amendment. The filing includes a standard disclaimer that representations, warranties, and covenants in the agreement were made solely for the benefit of the parties to the agreement and should not be relied upon by investors as characterizations of the actual state of facts.
Key Facts for Investor Verification
- Verify the current status of the 2014 Notes to determine if the contingent maturity date of June 3, 2022, applies.
- Review the full text of Amendment No. 2 (Exhibit 10.1) for specific leverage ratio thresholds that trigger the interest rate margins.
- Confirm the total outstanding balance under the revolving credit facility to assess the immediate impact of the margin changes.
- Note that the filing does not contain updated financial statements or liquidity metrics beyond the credit facility terms.