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Coca-Cola Bottling amends term loan for uniform pricing, covenants
By Wendy Van Sickle
Columbus, Ohio, July 17 – Coca-Cola Bottling Co. Consolidated entered on July 11 into an amendment to its term loan agreement dated June 7, 2016, with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The amendment aligns some terms of the term loan agreement with the company’s credit agreement dated June 8, including revisions to the calculation of interest rates, some covenants, including financial covenants, and some events of default.
The calculations of interest rates for borrowings under the term loan agreement were revised to be identical to the interest rate calculations under the June credit agreement.
Borrowings now bear interest at Libor plus a margin ranging from 87.5 basis points to 150 bps, depending on ratings.
The term loan amendment also made some adjustments to the calculation of the two financial covenants the company is required to maintain – a consolidated cash flow/fixed charges ratio and a consolidated funded debt/cash flow ratio – the definitions of which are now identical to those in the June credit agreement.
In addition, the term loan amendment modified some events of default to align with those in the June credit agreement, including the occurrence of unsatisfied judgments of the company or its subsidiaries in excess of $100 million, up from $50 million before the amendment, individually or in the aggregate, outstanding for 30 days or more that are not being appealed or contested in good faith.
The June credit agreement was also amended on July 11 to amend and restate the definition of “consolidated funded indebtedness/cash flow ratio” to conform to the definition in the term loan agreement.
Coca-Cola Bottling is a Charlotte, N.C., producer, marketer and distributor of non-alcoholic beverages.
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