UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 31, 2009
Baldor Electric Company
Exact name of registrant as specified in its charter
| Missouri | 01-07284 | 43-0168840 | ||
State or other jurisdiction of incorporation | Commission File Number | IRS Employer Identification No |
5711 R. S. Boreham, Jr., St Fort Smith, Arkansas | 72901 | |
| Address of principal executive offices | Zip Code |
Registrant’s telephone number, including area code 479-646-4711
N/A
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act. |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act. |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. |
| Item 1.01 | Entry into a Material Definitive Agreement |
On March 31, 2009, Baldor Electric Company and certain of its subsidiaries entered into an amendment to its credit agreement with BNP Paribas, as administrative agent, and certain of the lenders under the credit agreement. The amendment relaxes both the total leverage and senior secured leverage ratios. Pricing on the term loan increased to LIBOR plus 3.25% (from LIBOR plus 1.75% currently), and a 2.0% LIBOR floor was added. The company paid a 0.75% amendment fee on the sum of the revolving credit commitment and outstanding term loan.
The total leverage ratio covenant was amended as follows:
Period | Prior to the Amendment | As Amended | ||
Effective June 30, 2009 | 4.25 | 5.25 | ||
Effective December 31, 2009 | 3.75 | 5.25 | ||
Effective December 31, 2010 | 3.00 | 5.00 | ||
Effective March 31, 2011 | 3.00 | 4.75 | ||
Effective June 30, 2011 | 3.00 | 4.50 | ||
Effective March 31, 2012 | 3.00 | 3.50 | ||
And at all times thereafter |
This summary does not purport to be complete and is qualified in its entirety by reference to the amendment, a copy of which is attached as Exhibit 10 hereto, and the credit agreement and first amendment thereto, which were filed as Exhibit 10.1 to the Company’s Current Report of Form 8-K, on February 6, 2007, and Exhibit 10.I.2.1 to the Company’s Annual Report of Form 10-K, on February 28, 2007, respectively.
| Item 7.01 | Regulation FD Disclosure |
On April 1, 2009, Baldor Electric Company issued a press release announcing the amendment to its credit facility. A copy of the press release is attached as Exhibit 99.1 hereto, and is being furnished, not filed, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
| Item 9.01 | Financial Statements and Exhibits |
| (d) | See Exhibit Index |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Baldor Electric Company | ||||
| (Registrant) | ||||
| DateApril 1, 2009 | /s/ George E. Moschner | |||
| George E. Moschner | ||||
| Chief Financial Officer and Secretary | ||||
INDEX OF EXHIBITS
Exhibit No. | Description | |
| 10 | Credit Agreement Amendment | |
| 99.1 | Company issued news release dated April 1, 2009 | |