Subsequent Event |
3 Months Ended |
|---|---|
Mar. 31, 2020 | |
| Subsequent Events [Abstract] | |
| Subsequent Event |
NOTE 15—SUBSEQUENT EVENT
On April 15, 2020 the Company entered into a second amended and restated credit agreement (the “restated credit agreement”) which amended and restated the committed revolving line of credit agreement that was in effect as of March 31, 2020 and disclosed in Note 4. The restated credit agreement provides for i) a secured, committed revolving line of credit, maturing on August 1, 2023 with a commitment available for funding of $125.0 million (the "Revolving A Loan"), ii) a secured, committed revolving line of credit, maturing April 13, 2021, with a commitment available for funding of $400.0 million (the "Revolving B Loan", together with the Revolving A Loan, the "Revolving Loans"), and iii) an uncommitted $100.0 million incremental facility, which may be added to the Revolving B Loan if it is executed on, upon request by us to the administrative agent. Advances under the Revolving Loans can be either LIBOR loans or base rate loans. LIBOR loans bear interest on the outstanding principal amount thereof for each interest period at a rate per annum equal to LIBOR (subject to a LIBOR floor of 0.75% for advances under the Revolving A Loan and a LIBOR floor of 1.00% for advances under the Revolving B Loan) plus a margin ranging from 2.00% to 2.75% (the "LIBOR Margin"). Base rate loans bear interest on the outstanding principal amount thereof at a rate per annum equal to the LIBOR Margin plus the greater of (i) daily reset one month LIBOR or (ii) in the case of Revolving A Loans, 0.75% and in the case of Revolving B Loans, 1.00%; provided that if the lenders are unable to price loans based on LIBOR, base rate loans will bear interest at an interest rate per annum equal to a margin ranging from 1% to 1.75% plus the higher of (A) the rate of interest most recently announced by the administrative agent as its prime rate or (B) the federal funds rate plus 1.50%. The restated credit agreement requires the Company to comply with certain financial covenants, including a funded debt ratio, interest coverage ratio, and asset coverage ratio. The obligations of the Company under the restated credit agreement are secured by all assets of the Company and Columbia Brands USA, LLC, except for intellectual property, real property, equity interests in foreign subsidiaries and certain other exclusions. If the Company is in default, it is required to comply with certain restrictions on dividend payments and stock repurchases. On April 15, 2020, the Company borrowed $200 million under the Revolving B Loan, which supplemented $125 million that the Company had previously borrowed under the Revolving A Loan. Those amounts have been subsequently repaid and, at the time of this filing, there is no outstanding balance under the restated credit agreement.
Except for the Company's Japanese subsidiary's overdraft facility with a maximum borrowing of ¥300.0 million (approximately US$2.8 million), amounts outstanding under the Company's international subsidiaries' lines of credit and overdraft facilities as of March 31, 2020 have been subsequently repaid.
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