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8-K filed December 27, 2022, 6:59 PM ET ticker ALGN CIK 0001097149
debt confidence high sentiment positive materiality 0.50

ALIGN TECHNOLOGY INC (ALGN): debt financing — Align Technology amends credit facility: extends maturity to Dec 2027, relaxes covenants, switches to SOFR

ALIGN TECHNOLOGY INC

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

ALIGN TECHNOLOGY INC amended credit facility of $300.0 million unsecured revolving credit facility with Citibank, N.A., as administrative agent, and the lenders at adjusted term SOFR benchmark interest rate with applicable margin for SOFR loans maturing December 23, 2027.

Instrument
credit facility
Principal
$300.0 million unsecured revolving credit facility
Counterparty
Citibank, N.A., as administrative agent, and the lenders
Rate
adjusted term SOFR benchmark interest rate with applicable margin for SOFR loans
Maturity
December 23, 2027
Event
amendment
Exact text from the filing
After giving effect to the Amendment, the Credit Agreement continues to provide for a $300.0 million unsecured revolving credit facility with a $50.0 million letter of credit subfacility. As of the Closing Date, the Company had no revolving loans or letters of credit outstanding under the Credit Agreement. Among other things, the Amendment amends the Credit Agreement in order to (i) extend the expiration date of the commitments under the Credit Agreement from July 21, 2023 to December 23, 2027, (ii) remove the requirement that the Company comply with a minimum consolidated interest coverage ratio financial covenant for quarters ending after the effective date of the Amendment, (iii) increase the maximum consolidated total leverage ratio that the Company must comply with from 3.00 to 1.00 to 3.50 to 1.00, (iv) amend the interest rate provisions to replace the existing LIBOR benchmark interest rate with an adjusted term SOFR benchmark interest rate, (v) provide for the applicable margin
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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

ALIGN TECHNOLOGY INC amended Second Amendment to Credit Agreement with the lenders party thereto and Citibank, N.A., as administrative agent valued at $300.0 million unsecured revolving credit facility with a $50.0 million letter of credit subfacility (effective 2022-12-23).

Action
amendment
Agreement
credit facility
Counterparty
the lenders party thereto and Citibank, N.A., as administrative agent
Value
$300.0 million unsecured revolving credit facility with a $50.0 million letter of credit subfacility
Effective
2022-12-23
Exact text from the filing
On December 23, 2022 (the “ Closing Date ”), Align Technology, Inc., a Delaware corporation (the “ Company ”), entered into a Second Amendment to Credit Agreement (the “ Amendment ”), which amends the Company’s Credit Agreement, dated as of July 21, 2020, among the Company, certain subsidiaries of the Company that may become party thereto from time to time as guarantors, the lenders party thereto from time to time and Citibank, N.A., as administrative agent
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Source: SEC EDGAR
accession 0001097149-22-000069
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