Tredegar Corporation Enters into Amendment No. 5 to Second Amended and Restated Credit Agreement

Published: 2025-05-09 07:31:00 ET TG

Published on 05/09/2025 at 07:31, updated on 05/09/2025 at 13:35

On May 6, 2025, Tredegar Corporation, as borrower, and certain of the Company?s material domestic subsidiaries, as guarantors, entered into Amendment No. 5 to Second Amended and Restated Credit Agreement dated as of June 29, 2022 (as previously amended, the ? Amended Credit Agreement,?

and as further amended by the Fifth Amendment, the ? Amended ABL Facility?), among JPMorgan Chase Bank, N.A., as administrative agent and a lender (the ? Agent?), Bank of America, N.A., Citizens Bank, N.A., and PNC Bank, National Association (collectively, the ?

Lenders?). The material terms of the Amended ABL Facility include the following: The Amended ABL Facility provides for a $125 million asset-based facility. The maturity date of the Amended ABL Facility was extended to May 6, 2030.

The interest rate margins were reduced to a range between 1.75%-2.25% for any Term Benchmark Loan and any RFR Loan (each as defined in the Amended ABL Facility) and 0.75%-1.25% for any ABR Loan (as defined in the Amended ABL Facility), in each case, based on average quarterly availability. The commitment fee was decreased from 0.40% to (i) 0.25% if the Average Usage (as defined in the Amended ABL Facility) is greater than or equal to 50% and (ii) 0.375% if Average Usage is less than 50%. The borrowing base calculation was amended as follows: (i) real property is no longer eligible to be included in the borrowing base, (ii) the PP&E Component (as defined in the Amended ABL Facility), as included in the borrowing base, was changed to the lesser of (a) 60% of the Net Orderly Liquidation Value (as defined in the Amended ABL Facility) in place of eligible equipment and (b) 30% of the borrowing base and (iii) the amount of eligible cash included in the borrowing base is now capped at 15% of the borrowing base.

A Cash Dominion Period (as defined in the Amended ABL Facility) is now triggered when (x) availability falls below the greater of (i) 12.5% of the Line Cap (as defined in the Amended ABL Facility) and (ii) $12,600,000 or (y) during the continuation of an event of default and continuing until (x) availability is above the greater of (i) 12.5% of the Line Cap and (ii) $12,600,000 for 30 consecutive days and (y) no events of default are continuing. Compliance with the fixed charge coverage ratio of 1.00 to 1.00 is now triggered upon the occurrence of availability being less than the greater of (x) 10% of the Line Cap and (y) $10,000,000 and will continue until availability is equal to or greater than the greater of (x) 10% of the Line Cap and (y) $10,000,000 for 30 consecutive days, as long as no events of default are continuing. The Company and its affiliates regularly engage the Lenders to provide other banking services.

All of these engagements are negotiated at arm?s length.