Company: AVD
Filing Date: 2025-03-14
Form Type: 8-K
Source: 0001193125-25-054368
Chunk: 0

Company: AMERICAN VANGUARD CORP
Filing Date: 2025-03-14
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material Definitive Agreement  

On March 12, 2025, AMVAC Chemical Corporation (“ AMVAC”), principal operating subsidiary of American Vanguard Corporation (“ Registrant”), as borrower, and affiliates (including Registrant), as guarantors and/or borrowers, entered into Amendment Number Eight to the Third Amended and Restated Loan and Security Agreement (the “ Amendment”) with a group of commercial lenders led by BMO Bank NA (successor to the Bank of the West).

The Amendment, among other things, modified the Maximum Total Leverage Ratio to 6.25 for the periods ending March 31, 2025 and June 30, 2025; 5.75 for the period ending September 30, 2025; and returning to 3.25 for the periods ending December 31, 2025, and thereafter. The Minimum Fixed Charge Coverage Ratio was modified to 1.15 for the period ending March 31, 2025, and returning to 1.25 for the period ending June 30, 2025 and thereafter. The amount of borrowing capacity under the revolving credit facility was reduced by $50,000,000 through June 30, 2025, $40,000,000 from July 1, 2025 through December 31, 2025, and $75,000,000 from January 1, 2026 through the Revolver Commitment Termination Date. In addition, the Company may not repurchase shares, pay cash dividends to shareholders, or make Permitted Acquisitions without the lenders’ consent.

For purposes of calculating Consolidated EBITDA, the basket for transformation and one-timecash and non-cashcharges (which are excluded from such measure) was modified for the periods ended December 31, 2024, March 31, 2025, June 30, 2025 and September 30, 2025, to account for expenses related to discontinued operations related to the Company’s SIMPAS business, plus the write-down of certain inventory, up to a maximum of $50 million. Additional baskets were added for, (i) losses on the sale of fixed assets,(ii) non-cashstock-based compensation, (iii) extraordinary losses, (iv) losses on asset disposition and discontinued operations outside of the ordinary course of business, (v) attorneys’ and consulting fees related to the amendment, and (vi) agent and lender fees, subject