8-KMaterial AgreementsFinancial EventsExhibits & Filings

CINTAS CORP 8-K Report, Material Agreement (Jun 28, 2016)

Filed June 28, 2016For Securities:CTAS

Summary

Cintas Corporation (CTAS) filed an 8-K on June 27, 2016, reporting a material amendment to its credit agreement. The primary focus of this amendment, the Seventh Amendment, is to enhance the company's financial flexibility and borrowing capacity. This update will be of interest to investors concerned with Cintas's debt structure, liquidity, and its ability to fund future growth or manage operations. The key changes involve extending the maturity date of the credit facility and significantly increasing its size. These modifications suggest management's confidence in the company's long-term prospects and its strategic positioning. Investors should note the increased revolving commitment, which provides greater access to capital, and the extended timeline for repayment, indicating a stable financial outlook.

Key Highlights

  • 1Cintas Corporation No. 2, a subsidiary, entered into a Seventh Amendment to its Credit Agreement with KeyBank National Association as agent.
  • 2The maturity date of the Credit Agreement has been extended from May 28, 2019, to June 22, 2021.
  • 3The total revolving commitment under the Credit Agreement has been increased from $300,000,000 to $450,000,000.
  • 4Cintas No. 2 has an option to further increase the total revolving commitment by an additional $150,000,000, subject to lender consent.
  • 5The Seventh Amendment also adjusts the applicable margin for interest rates, facility fees, and base rates.
  • 6The Corporation and specified wholly-owned subsidiaries guarantee payment obligations under the Credit Agreement.
  • 7The filing incorporates information from Item 1.01 into Item 2.03, confirming a direct financial obligation.

Frequently Asked Questions

The main purpose of this 8-K filing is to report the Seventh Amendment to Cintas Corporation's Credit Agreement, which significantly modifies its terms, including extending the maturity date and increasing the revolving credit facility.

The amendment increases the total revolving commitment from $300 million to $450 million, providing Cintas with an additional $150 million in available credit. Furthermore, there's an option to increase this by another $150 million, potentially bringing the total to $600 million, subject to lender approval.

The maturity date for the Credit Agreement has been extended from May 28, 2019, to June 22, 2021, providing Cintas with more time to repay its borrowings under this facility.

Yes, the Seventh Amendment also adjusts the applicable margin used to calculate interest rates on outstanding loans, as well as the facility fee and base rate payable under the Credit Agreement.