8-KMaterial AgreementsFinancial EventsExhibits & Filings

ENTEGRIS INC 8-K Report, Material Agreement (Sep 13, 2023)

Filed September 13, 2023For Securities:ENTG

Summary

Entegris, Inc. (ENTG) has filed an 8-K report detailing an amendment to its Credit and Guaranty Agreement. Specifically, Amendment No. 2, entered into on September 11, 2023, modifies the terms of the company's outstanding term B loans. The primary change is a reduction in the applicable interest rate for these loans. This amendment is a positive development for Entegris as it lowers the cost of borrowing. The new terms provide two options for interest calculation: either Term SOFR plus a 2.50% margin or a base rate plus a 1.50% margin. This adjustment to their credit facility suggests a favorable credit standing and potentially improved profitability through reduced interest expenses.

Key Highlights

  • 1Entegris entered into Amendment No. 2 to its Credit and Guaranty Agreement on September 11, 2023.
  • 2The amendment reduces the applicable interest rate on the company's outstanding term B loans.
  • 3Post-amendment, term B loans will bear interest at either Term SOFR + 2.50% or a base rate + 1.50%.
  • 4The existing credit agreement was previously amended and restated in July 2022 and further amended in March 2023.
  • 5This filing is related to a material definitive agreement and the creation of a direct financial obligation.
  • 6The amendment is effective as of September 11, 2023.
  • 7The terms of the Amended Credit Agreement are substantially similar to the Existing Credit Agreement, with the exception of the interest rate reduction.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Entegris, Inc.'s entry into Amendment No. 2 to its Credit and Guaranty Agreement, which specifically reduces the interest rates on its outstanding term B loans.

The applicable interest rate for the outstanding term B loans is reduced. Borrowers now have the option to have their loans bear interest at either 'Term SOFR plus an applicable margin of 2.50%' or 'a base rate plus an applicable margin of 1.50%'. This likely results in a lower overall interest cost for Entegris.

Aside from the reduction in the applicable interest rate on the term B loans, the terms of the Amended Credit Agreement remain substantially similar to the Existing Credit Agreement, indicating no drastic changes to other covenants or provisions.

The Second Amendment was entered into on September 11, 2023, and is effective as of that date, modifying the terms of the Credit and Guaranty Agreement.