Company: ACCO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024931
Chunk: 30

Company: ACCO BRANDS Corp
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 30
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/AUD/CDN Dollar Loans
     
    Applicable Rate on Base Rate Loans
     
    Undrawn Fee

    > 4.25
     
    2.25 %
     
    1.25 %
     
    0.375 %

    > 3.5
     
    2.00 %
     
    1.00 %
     
    0.350 %

    > 2.5
     
    1.75 %
     
    0.75 %
     
    0.300 %

    ≤ 2.5
     
    1.50 %
     
    0.50 %
     
    0.250 %

As of December 31, 2024, the applicable rate on Euro, Australian and Canadian dollar loans was 2.00 percent and the applicable rate on Base Rate loans was 1.00 percent. Undrawn amounts under the Revolving Facility are subject to a commitment fee rate of 0.25 percent to 0.375 percent per annum, depending on the Company's Consolidated Leverage Ratio. As of December 31, 2024, the commitment fee rate was 0.35 percent. 

Financial Covenants

The current financial covenants under the Credit Agreement are as follows:

•Minimum Interest Coverage Ratio (as defined in the Credit Agreement) of 3.00:1.00; and

•Maximum Consolidated Leverage Ratio financial covenant for all first and second fiscal quarters is 4.50x dropping to 4.00x for all third and fourth fiscal quarters. 

As of December 31, 2024, our Consolidated Leverage Ratio was approximately 3.38 to 1.00 versus our maximum covenant of 4.00 to 1.00. Our Interest Coverage Ratio was approximately 5.35 to 1.00 versus the minimum covenant of 3.00 to 1.00.

Other Covenants and Restrictions

The Credit Agreement contains customary affirmative and negative covenants as well as events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross-defaults, certain bankruptcy or insolvency events, certain ERISA-related events, changes in control or ownership and invalidity of any loan document. The Credit Agreement 

31

also establishes limitations on the aggregate amount of Permitted Acquisitions and Investments (each as defined in the Credit Agreement) that the Company and its subsidiaries