HNI secures $280M unsecured term loan to fund Kimball International acquisition

HNI CORP

$280M unsecured delayed draw term loan facility; proceeds for Kimball International merger.
Matures five years from funding; quarterly amortization escalates from 0% to 10% of principal.
Interest at adjusted Term SOFR + 1.125%-1.875% or base rate + 0.125%-0.875%, based on leverage.
Covenants require maximum leverage ratio and minimum interest coverage ratio.
Ticking fee of 0.125%-0.250% on unused commitments; increases by 0.10% if merger extended.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

HNI CORP entered into Term Loan Credit Agreement with Wells Fargo Bank, National Association, as administrative agent, U.S. Bank National Association, as syndication agent, and Wells Fargo Bank, National Association and U.S. Bank National Association as joint lead arrangers and joint lead bookrunners valued at $280.0 million (effective 2023-03-31).

Action: entry
Agreement: credit facility
Counterparty: Wells Fargo Bank, National Association, as administrative agent, U.S. Bank National Association, as syndication agent, and Wells Fargo Bank, National Association and U.S. Bank National Association as joint lead arrangers and joint lead bookrunners
Value: $280.0 million
Effective: 2023-03-31

Exact text from the filing

On March 31, 2023, HNI Corporation (the "Company") entered into a Term Loan Credit Agreement, by and among the Company, the lenders from time to time party thereto, Wells Fargo Bank, National Association, as administrative agent, U.S. Bank National Association, as syndication agent, and Wells Fargo Bank, National Association and U.S. Bank National Association as joint lead arrangers and joint lead bookrunners (the "Term Loan Credit Agreement").

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Source: SEC EDGAR

accession 0000048287-23-000126

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