UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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| Item 1.01 | Entry into a Material Definitive Agreement. |
Fifth Amended and Restated Credit Agreement
On March 31, 2021, Commercial Metals Company (the “Company”) and CMC International Finance, a société à responsabilité limitée (a wholly owned subsidiary of the Company), entered into a Fifth Amended and Restated Credit Agreement (the “Credit Agreement”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and a L/C Issuer, Wells Fargo Bank, National Association, Citibank, N.A. and PNC Bank, National Association as Co-Syndication Agents, the lenders from time to time party thereto, and BOFA Securities, Inc., Wells Fargo Bank, National Association, PNC Bank, National Association and Citibank, N.A. as Joint Lead Arrangers and Joint Book Runners.
The Credit Agreement amends the terms of the Company’s previous credit agreement to, among other things, (i) provide for a revolving credit facility of $400.0 million and (ii) extend the maturity date to March 31, 2026.
The Credit Agreement contains customary representations, warranties, covenants and events of default consistent with the Company’s previous credit agreement. As of March 31, 2021, no amount was drawn under the credit facility. The foregoing description of the credit facility and Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Credit Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.
Amendments to Receivables Agreements
On April 1, 2021, the Company entered into Amendment No. 9 (the “RPA Amendment”) to its Receivables Purchase Agreement, dated April 5, 2011, by and among the Company, CMC Receivables, Inc., and Wells Fargo Bank, N.A., as purchaser administrative agent for the purchasers (the “RPA”). In addition, on April 1, 2021, the Company entered into Omnibus Amendment No. 4 (the “Omnibus Amendment”) to (i) the RPA, (ii) the Company’s Receivables Sale Agreement, dated April 5, 2011, by and among the Company, CMC Receivables, Inc. and several of the Company’s subsidiaries (the “RSA”), and (iii) the associated Performance Undertaking, dated April 5, 2011, executed by the Company in favor of CMC Receivables, Inc. (the “Performance Undertaking,” and collectively with the RPA and the RSA, the “Receivables Agreements”).
The RPA Amendment, among other things, amends the parties to the RPA. After giving effect to the RPA Amendment, the Omnibus Amendment (i) amends the RSA to, among other things, join CMC Post Oklahoma, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company (“CMC Post”), as an originator thereunder, (ii) amends the RPA to, among other things, (x) join Truist Bank as a purchaser under the RPA, (y) reduce the collective commitment of the purchasers under the RPA from $200.0 million to $150.0 million and (z) extend the termination date of the RPA from November 1, 2021 to March 31, 2023, (iii) amends the Performance Undertaking to, among other things, include a guarantee by the Company of the performance of CMC Post’s obligations under the RSA, and (iv) amends and restates each of the Receivables Agreements in its entirety.
The RPA Amendment and the Omnibus Amendment do not materially amend the covenants, events of default and payment terms of the Receivables Agreements, which remain substantially the same following such amendments. The foregoing description of each of the RPA Amendment and the Omnibus Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the RPA Amendment and the Omnibus Amendment, respectively, copies of which are filed as Exhibits 10.2 and 10.3, respectively, to this Current Report on Form 8-K and are incorporated by reference herein.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| COMMERCIAL METALS COMPANY | ||||||
| Date: April 6, 2021 | By: | /s/ Paul J. Lawrence | ||||
| Name: | Paul J. Lawrence | |||||
| Title: | Vice President and Chief Financial Officer | |||||