Business Context and Reporting Period
Company: Apogee Enterprises, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: November 14, 2006
Subject: Entry into a Material Definitive Agreement (Amendment No. 1 to Credit Agreement).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It focuses exclusively on debt facility terms.
| Metric | Value/Detail |
|---|---|
| Credit Facility Type | Five-year, committed, unsecured, revolving credit facility |
| Facility Amount | $100.0 million (expandable to $175.0 million) |
| Letter of Credit Sub-limit | Up to $25 million |
| Commitment Fee (Revised) | 0.15% per annum (reduced from 0.20%) |
| Interest Rate Basis | LIBOR or Alternate Base Rate plus Applicable Margin |
Material Changes Versus Prior Period
On November 14, 2006, the Company amended its May 4, 2005 Credit Agreement with the following changes:
- Extension of Term: The Commitment Termination Date was extended from May 4, 2010, to November 14, 2011.
- Interest Rate Reduction: The Applicable Margin on LIBOR rate loans was decreased, effectively lowering the interest rate payable on borrowings.
- Fee Reduction: The Commitment Fee was reduced from 0.20% to 0.15% per annum of the average daily Available Commitment.
Guidance, Outlook, and Risks
Management Commentary: The filing indicates a successful renegotiation of credit terms, resulting in lower borrowing costs and an extended maturity date. No specific forward-looking financial guidance or revenue outlook is provided in this document.
Risks and Contingencies: The filing notes that the description of the Amendment is qualified in its entirety by reference to the full text of the Amendment (Exhibit 10.1). No new material risks or contingencies are disclosed beyond the standard terms of the credit agreement.
Investor Verification Checklist
- Verify the specific calculation of the new "Applicable Margin" to quantify the exact interest rate savings.
- Review Exhibit 10.1 for any covenants or conditions attached to the extension of the maturity date.
- Confirm the current utilization rate of the $100 million facility to assess immediate liquidity needs.
- Check subsequent filings for any further amendments or defaults related to this credit agreement.