Business Context and Reporting Period
Company: Boise Cascade Company
Filing Type: Form 8-K (Current Report)
Date of Report: August 7, 2015
Event: Entry into a Material Definitive Agreement regarding an amendment to the Senior Secured Asset-Based Credit Facility.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or total debt levels. It specifically addresses interest rate margins on the company's revolving credit facility and term loan component.
| Loan Type | Previous Margin Range | New Margin Range |
|---|---|---|
| Base Rate Loans | 0.50% to 1.00% | 0.25% to 0.75% |
| LIBOR Rate Loans | 1.50% to 2.00% | 1.25% to 1.75% |
| Term Loan Component | Unchanged | Unchanged |
Material Changes
On August 7, 2015, Boise Cascade and its principal operating subsidiaries entered into the First Amendment to the Amended and Restated Credit Agreement with Wells Fargo Capital Finance, LLC, and other lenders. The primary material change is a reduction in the applicable margins used to calculate interest rates for the revolving credit facility, contingent on Average Excess Availability.
Outlook, Risks, and Management Commentary
The filing contains no forward-looking guidance, management commentary on future performance, or discussion of new risks. The reduction in interest margins is a favorable financial adjustment that lowers borrowing costs for the revolving facility. The filing notes that the summary is qualified by the complete text of the Amendment filed as Exhibit 10.1.
Investor Verification Checklist
- Verify the specific "Average Excess Availability" thresholds required to achieve the lowest new interest margins (0.25% for base rate and 1.25% for LIBOR).
- Review Exhibit 10.1 (First Amendment to Amended and Restated Credit Agreement) for any covenants or conditions attached to the margin reduction.
- Confirm the total outstanding balance on the revolving credit facility to estimate the immediate impact of the margin reduction on interest expense.