On September 9, 2022, Boise Cascade Company and its principal operating subsidiaries, Boise Cascade Wood Products, LLC, and Boise Cascade Building Materials Distribution, LLC, as borrowers, and Boise Cascade Wood Products Holding Corp., Coastal Plywood, LLC, Coastal Forest Products LLC, Coastal Treated Products LLC and Coastal Treated Products-Havana LLC, as Guarantors, have entered into the Eighth Amendment to the Amended and Restated Credit Agreement with Wells Fargo Capital Finance, LLC, as as administrative agent, and the lenders from time to time party thereto, originally dated May 15, 2015 (as amended, restated, supplemented or otherwise modified prior to the date of the Amendment, the “Credit Agreement” and as amended by the Amendment, the “Amended Agreement”). The amended agreement includes a senior secured asset-based revolving credit facility and a term loan. The Amendment extends the maturity date of the Credit Agreement to the earlier of (i) September 9, 2027 and (ii) 90 days prior to maturity of the $400 million 4.875% Senior Notes of the Company due July 1, 2030 (or the maturity date of any authorized refinancing debt or any increased refinancing debt authorized in this regard).
In addition, the amendment increases the maximum amount available for revolving loans under the credit agreement from $350.0 million to $400.0 million. The term loan under the amended agreement remains at $50.0 million. The amendment also changes the interest rates under the credit agreement.
Previously, in the credit agreement, interest rates were based, at the option of the company, either on the LIBOR rate or on the base rate, as defined in the credit agreement, plus a spread on the index. The Amendment replaces the LIBOR rate with a simple daily SOFR and a forward SOFR. Both SOFR options include a credit spread adjustment of 0.10%.
The applicable spreads for the credit agreement have not changed. In addition, the Amendment reduced the unused line charge that the Company will pay from 0.25% per annum to 0.20% per annum. The amendment also changes the borrowing base and certain components of the borrowing base, which is used to determine the amount available under the revolving credit facility under the amended agreement.
The amended agreement contains a requirement that meets a fixed charge coverage ratio (FCCR) of 1:1, applicable only if excess availability falls below 10% of the line cap. The Amended Agreement allows dividends to be paid only if, at the time of payment (i) no default has occurred or is continuing (or would result from such payment) under the Amended Agreement, and (ii ) (x) the pro forma excess availability is equal to or greater than 20% of the line cap or (y) the pro forma excess availability is equal to or greater than 15% of the line cap and the fixed charge coverage ratio is greater than or equal to 1:1 on a pro forma basis.