AMERICAN VANGUARD CORP (AVD): debt financing — AMVAC Chemical amends credit facility; loosens leverage covenants, restricts dividends and buybacks

AMERICAN VANGUARD CORP

Maximum Total Leverage Ratio raised to 6.25x for Q1/Q2 2025, then 5.75x for Q3, returning to 3.25x year-end.
Minimum Fixed Charge Coverage Ratio lowered to 1.15x for Q1 2025, then 1.25x thereafter.
Borrowing capacity reduced by $50M-$75M through 2026; no share repurchases or dividends without lender consent.
EBITDA add-back basket up to $50M for SIMPAS discontinuation and inventory write-downs.
Interest rates set at SOFR+3.75%, Base Rate+2.75%; additional reporting including 13-week cash flow forecasts.

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

AMERICAN VANGUARD CORP amended credit facility with BMO Bank NA at Applicable Margin for SOFR Loans and Letter of Credit Fees set at 3.75%, the App.

Instrument: credit facility
Counterparty: BMO Bank NA
Rate: Applicable Margin for SOFR Loans and Letter of Credit Fees set at 3.75%, the App
Event: amendment

Exact text from the filing

n (“Registrant”), as borrower, and affiliates (including Registrant), as guarantors and/or borrowers, entered into Amendment Number Eight to the Third Amended and Restated Loan and Security Agreement (the “Amendment”) with a group of commercial lenders led by BMO Bank NA (successor to the Bank of the West). The Amendment, among other things, modified the Maximum Total Leverage Ratio to 6.25 for the periods ending March 31, 2025 and June 30, 2025; 5.75 for the period ending September 30, 2025; and returning to 3.25 for the periods ending December 31, 2025, and thereafter.

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Source: SEC EDGAR

accession 0001193125-25-054368

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