Company: ABM
Filing Date: 2025-02-28
Form Type: 8-K
Source: 0000950170-25-030050
Chunk: 1

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-02-28
Form: 8-K
Item: Item 1.01
Chunk 1
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 highest of (1) the federal funds rate plus 0.50%, (2) the “prime rate” published by Bank of America, N. A. from time to time, and (3) Term SOFR plus 1.00%. Under the terms of the Credit Agreement, ABM will also pay a commitment fee based on the total net leverage ratio, payable quarterly in arrears, ranging from 0.200% to 0.400%.

The Credit Agreement contains certain financial covenants that include a maximum total net leverage ratio of 5.00 to 1.00 and a maximum secured net leverage ratio of 4.00:1:00, in each case subject to certain conditions and exceptions, and a minimum interest coverage ratio of 1.50 to 1.00. In addition, the Credit Agreement includes customary representations and warranties, events of default and negative covenants.

The proceeds of the initial term loans made on the Closing Date were used to refinance the Original Credit Agreement, to pay a portion of the revolving outstanding amount and to pay transaction costs related to the transactions described herein.

A copy of the Credit Agreement is attached hereto as Exhibit 10.1 and is incorporated by reference herein. The foregoing description of the Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the Credit Agreement.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.