8-KMaterial AgreementsExhibits & Filings

COMFORT SYSTEMS USA INC 8-K Report, Material Agreement (Jul 1, 2005)

Filed July 1, 2005For Securities:FIX

Summary

Comfort Systems USA, Inc. (FIX) announced on July 1, 2005, the execution of a new senior credit facility effective June 30, 2005. This new facility provides a $75 million revolving line of credit, replacing a previous credit arrangement. The facility, arranged by Hibernia Southcoast Capital, Inc., offers more flexibility with a maturity date of June 30, 2009. Key features of the new facility include a borrowing base tied to trade receivables and specific financial covenants. These covenants are assessed quarterly and include a Fixed Charge Coverage Ratio, a Tangible Net Worth requirement, and a Debt to Credit Facility Adjusted EBITDA ratio. The company has secured this facility with all its corporate assets and has no current borrowings outstanding under it. This move signifies a strategic step in managing the company's financial flexibility and growth potential.

Key Highlights

  • 1Comfort Systems USA, Inc. entered into a new senior credit facility on June 30, 2005.
  • 2The new facility provides a $75 million revolving line of credit, replacing the prior credit facility.
  • 3The facility expires on June 30, 2009.
  • 4Borrowings are subject to a borrowing base calculated as 65% of eligible trade receivables.
  • 5Key financial covenants include a minimum Fixed Charge Coverage Ratio, a minimum Tangible Net Worth, and a maximum Debt to Credit Facility Adjusted EBITDA ratio.
  • 6The facility is secured by all of the Company's corporate assets.
  • 7The Company currently has no outstanding borrowings under the new facility.

Frequently Asked Questions

This 8-K filing primarily announces the entry into a new material definitive agreement, specifically a senior credit facility, and the termination of a prior credit agreement.

The new senior credit facility provides Comfort Systems USA, Inc. with a $75 million revolving line of credit.

The new credit facility expires on June 30, 2009.

Yes, borrowings and letters of credit are limited by a 'borrowing base' which is calculated as 65% of specific trade receivables, and the company must also comply with quarterly financial covenants such as the Fixed Charge Coverage Ratio, Tangible Net Worth, and Debt to Credit Facility Adjusted EBITDA ratio.