Summary
Copart, Inc. (CPRT) filed an 8-K on December 15, 2010, to report the entry into an Amended and Restated Credit Facility Agreement with Bank of America, N.A. This new agreement supersedes their previous credit arrangement and significantly alters the company's debt structure. It establishes a $100.0 million revolving credit facility and a $400.0 million term loan facility, providing Copart with substantial financial flexibility for various corporate purposes, including stock repurchases, capital expenditures, acquisitions, and general working capital needs. The credit facility is unsecured and has a maturity date of December 14, 2015. Key terms include covenants such as a maximum total leverage ratio and a minimum interest coverage ratio, alongside customary representations and warranties. The agreement also outlines specific conditions for drawing down the term loan, including a 45-day availability period and commitment fees on unused portions of both facilities. The terms of this new credit agreement are crucial for investors to understand Copart's debt obligations, financial capacity, and potential for future growth initiatives.
Key Highlights
- 1Copart entered into an Amended and Restated Credit Facility Agreement with Bank of America, N.A. on December 14, 2010.
- 2The new agreement replaces the previous credit agreement with Bank of America.
- 3The facility includes a $100 million revolving credit facility and a $400 million term loan facility.
- 4The total credit available is $500 million, maturing on December 14, 2015.
- 5Proceeds from the credit facility can be used for stock repurchases, capital expenditures, permitted acquisitions, working capital, and other general corporate purposes.
- 6The agreement is unsecured and subject to customary covenants, including a maximum total leverage ratio and minimum interest coverage ratio.
- 7Commitment fees apply to the unused portions of both the revolving credit and term loan facilities, with specific terms for the term loan drawdown.