Item 1.01Item 1.01 - Entry into Material Agreement
Item 1.01 Entry into a Material Definitive Agreement
On May 29, 2026, the Registrant
and certain of its subsidiaries entered into Credit Agreement with a group of banks led by JPMorgan Chase Bank, N.A. as administrative
agent, Bank of America, N.A. as syndication agent, BMO Capital Markets Corp., Commerce Bank, Regions Capital Markets, a Division
of Regions Bank, TD Bank, N.A. and Wells Fargo Bank, National Association as co-documentation agents (the “New Credit Agreement”).
The New Credit Agreement will become effective subject to a number of conditions, including (and substantially
concurrently with) the consummation of the Transaction (the date of such consummation, the “Acquisition Closing Date”)
and will replace the Amended and Restated Credit Agreement, dated as of August 30, 2023 among the Registrant, the Foreign Subsidiary
Borrowers party thereto, the Lenders party thereto, JPMorgan Chase Bank, N.A. as Administrative Agent, Bank of America, N.A. as Syndication
Agent, Commerce Bank and TD Bank, N.A. as Co-Documentation Agents, and the Departing Lenders as defined therein (as amended, the “Existing
Credit Agreement”), which as noted below, will be terminated on the Acquisition Closing Date upon the effectiveness of the New
Credit Agreement.
The New Credit Agreement provides for (a) a senior secured revolving
credit facility in an initial aggregate commitment amount of $500 million (the “Revolving Credit Facility”), (b) a senior
secured term loan A facility in an initial aggregate principal amount of $500 million (the “Term Loan A Facility”), and (c) a
senior secured term loan B facility (the “Term Loan B Facility,” and together with the Revolving Credit Facility and the
Term Loan A Facility, the “Senior Secured Credit Facilities”). The Term Loan B Facility is yet to be syndicated, and upon
syndication, the Registrant expects the Term Loan B Facility to be up to an initial aggregate principal amount of $500 million.
On the Acquisition Closing Date, the
Registrant will use the proceeds of borrowings under the Term Loan A Facility and the Term Loan B Facility, together with borrowings
under the Revolving Credit Facility and cash on hand, to (i) fund the cash portion of the purchase price for the Transaction, (ii) consummate
the refinancing of existing indebtedness of the Registrant and the Company, and (iii) pay the fees, premiums, expenses, and other
transaction costs incurred in connection with the Transaction. Any remaining proceeds drawn under the Revolving Credit Facility are to
be used for working capital and general corporate purposes.
The obligations under the New Credit
Agreement will be guaranteed by the Registrant (with respect to the obligations of the foreign borrowers), the other borrowers and the
Registrant’s direct and indirect material U.S. subsidiaries, subject to a number of exceptions.
The obligations of the Registrant and
the borrowers and the guarantors under the Senior Secured Facilities will be secured by a first priority perfected security interest,
subject to permitted liens and certain customary exceptions, in substantially all tangible and intangible personal property of the Registrant
and the other borrowers and the guarantors, including the pledge of 100% of the equity interests of each of the borrowers’
and guarantors’ existing and future material domestic and foreign subsidiaries (except where such a pledge as to certain foreign
or other subsidiaries would cause an adverse tax or accounting consequence, 65% of the voting equity interests and 100% of the non-voting
equity interests of such foreign subsidiary or other subsidiary).
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Through a credit facility expansion
option, the Registrant may elect to increase the aggregate amount of the Revolving Credit Facility or obtain incremental term loans in
any agreed currency up to the U.S. Dollar equivalent of up to (a) the greater of (x) $451 million or (y) 100% of
Consolidated EBITDA (as defined and for periods set forth therein) plus (b) additional amounts subject to certain terms and
conditions (including compliance with certain maximum leverage ratios). In addition to loans drawn down by the Registrant, certain of
the Registrant’s foreign subsidiaries may draw loans on the New Credit Agreement. Under the $500 Revolving Credit Facility, up
to the U.S. dollar equivalent of $75 million may be made available in certain specified foreign currencies, and up to the U.S. dollar
equivalent of $75 million may be made available for the issuance of letters of credit.
Interest on loans under the New
Credit Agreement may be calculated at a spread over either an Adjusted Term SOFR Rate, Adjusted EURIBOR Rate, Daily Simple
SONIA Rate or Alternate Base Rate, at the Registrant’s election. In addition, the Registrant will pay a facility fee on the
aggregate amount of the Senior Secured Facility, and certain other fees.
The New Credit Facility imposes various restrictions on the Registrant,
including usual and customary representations and warranties, financial covenants including a leverage ratio and an interest coverage
ratio, yield protection covenants, limitations on the ability of the Registrant or any of its subsidiaries to incur debt, to grant
liens upon their assets, and prohibition of certain consolidations, mergers and sales and transfers of assets by the Registrant and its
subsidiaries without the consent of the lenders. The New Credit Agreement includes usual and customary events of default for facilities
of this nature (with customary grace periods, as applicable) and provides that, upon the occurrence of an event of default, payment of
all amounts payable under the New Credit Agreement may be accelerated and/or the lenders’ commitments may be terminated. In addition,
upon the occurrence of certain insolvency or bankruptcy related events of default, all amounts payable under the New Credit Agreement
will automatically become immediately due and payable, and the lenders’ commitments will automatically terminate.
Until such time as the New Credit Agreement
becomes effective on the Acquisition Closing Date, the Existing Credit Agreement will remain in full force and effect. A description
of the Existing Credit Agreement is incorporated by reference to Item 1.01 in our Current Report Form 8-K, filed with the U.S. Securities
and Exchange Commission on September 6, 2023, and a copy of the Existing Credit Agreement and amendments thereto are attached
as Exhibits 10.1(a), (b) and (c) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended September 30,
2025, filed with the Commission on December 1, 2025.
The foregoing summary of the New Credit Agreement is qualified in
its entirety by reference to the full text of the New Credit Agreement, a copy of which is filed as Exhibit 10.1 to this Current
Report on Form 8-K and incorporated by reference herein.
The Registrant has various relationships with JPMorgan Chase Bank,
N.A., as well as certain of the other lenders under the New Credit Agreement. Certain of such lenders and their affiliates have engaged,
and may in the future engage, in investment banking, commercial banking and other financial advisory and commercial dealings with the
Registrant and its affiliates.