SUNOCO LP: Entering into a Material Definitive Agreement, Creating a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (Form 8-K)
Item 1.01. Concluding a significant definitive agreement
The credit agreement is a
The Credit Agreement requires the Partnership to maintain a net leverage ratio not exceeding 5.50:1.00. The Credit Agreement also requires the Partnership to maintain an interest coverage ratio (as defined therein) of at least 2.25:1.00.
The indebtedness under the Credit Agreement is secured by a security interest in, among other things, all present and future personal property of the Partnership and all present and future personal property of its guarantors, the capital stock of its subsidiaries (or 66% of the share capital of significant foreign subsidiaries), and any intercompany debt. Upon the first achievement by the Partnership of an investment grade credit rating, all security securing the Credit Agreement will be released.
The indebtedness under the Credit Agreement is guaranteed by certain material subsidiaries of the Partnership.
The Credit Agreement contains certain customary representations and warranties, positive and negative clauses and events of default. If an Event of Default occurs and continues, the Lenders may declare all amounts outstanding under the Credit Agreement immediately due and payable.
The foregoing description is qualified in its entirety by reference to the full text of the Credit Agreement, which is filed as Schedule 10.1 to this current Report on Form 8-K and incorporated into this Section 1.01 by reference.
Section 2.03. Creation of a Direct Financial Obligation or an Obligation under a
Off-Balance Sheet Arrangement of a Registrant
The information set forth in Section 1.01 relating to the Credit Agreement under the heading “Credit Agreement” is incorporated into this Section 2.03 by reference.
Item 9.01 Financial statements and supporting documents.
(d) Exhibits. Exhibit Number Description 10.1 Amended and Restated Credit Agreement, dated as of
April 7, 2022, by and among Sunoco LP, as borrower, Bank of America N.A., as administrative agent, collateral agent, swingline lender and an LC issuer and the lenders party thereto. 104 Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document).
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