Financial Commitments - The aggregate principal amount of Aggregate Commitments A-1 is $585,937,500 as of the Sixth Amendment Effective Date[4] - The aggregate principal amount of Aggregate Commitments A-2 is $39,062,500 as of the Sixth Amendment Effective Date[5] - The US Borrower must make prepayments to ensure that US A-1 Total Outstandings and US A-2 Total Outstandings do not exceed their respective Aggregate Commitments[18] Financial Ratios and Forecasts - The US Borrower is required to maintain a Consolidated Asset Coverage Ratio of no less than 1.00 to 1.00 at the end of any fiscal quarter[15] - The Consolidated Interest Coverage Ratio must be at least 2.00 to 1.00 by the end of the fiscal quarter ending May 31, 2024, and at least 1.25 to 1.00 for the quarters ending February 28, 2025, and February 28, 2026[15] - The US Borrower must provide a 13-week cash flow forecast starting December 31, 2025, including a reconciliation of actual cash receipts and disbursements[11] - The US Borrower is required to deliver monthly financial statements within 30 days after the end of each calendar month, starting with the month ending September 30, 2025[10] - The US Borrower must project financials for the fiscal years ending August 31, 2026, and August 31, 2027, by December 31, 2025[11] Administrative and Compliance Obligations - The US Borrower will reimburse the Administrative Agent for fees associated with a financial advisor engaged for operational and financial performance evaluation[12] - The Loan Parties agreed to reimburse the Administrative Agent and the Canadian Lender for all reasonable out-of-pocket expenses related to the Amendment[23] - Radius Recycling, Inc. confirmed the completion of due diligence investigations by lenders, ensuring compliance with applicable laws[20] - Each Loan Party affirmed its obligations under the Loan Documents and acknowledged that all security interests remain in effect[25] - The Loan Parties released the Lender Group from any claims arising in connection with the Loan Documents prior to the Amendment date[35] - The Loan Parties acknowledged that no approvals or consents from governmental authorities are required for the execution of the Amendment[27] Amendment and Legal Framework - The Amendment ratifies and confirms the Loan Documents and obligations of the Loan Parties, maintaining their full force and effect[24] - The Amendment allows for electronic signatures and records, ensuring the same legal effect as paper documents[30] - The Amendment is governed by the laws of the State of New York, incorporating terms related to jurisdiction and waiver of jury trial[33][34] - The Amendment does not alter or affect the rights and remedies of the holders of the Obligations under the Existing Credit Agreement[29] - Each Lender confirmed that their representations and warranties are true and correct as of the Amendment's effective date[28] Operational Structure and Management - Pick-N-Pull Auto Dismantlers operates multiple LLCs across various states, indicating a broad operational footprint in the auto dismantling industry[43] - Radius Recycling, Inc. has undergone a sixth amendment, suggesting potential changes in financial agreements or operational strategies[44] - Proleride Transport Systems, Inc. and its affiliated companies are managed by W. Brandon Peele, indicating a centralized management structure[45] - Schnitzer Steel Canadian Holdings, Inc. is involved in multiple LLCs, reflecting a diversified approach in the recycling sector[48] - The presence of multiple lenders, including Bank of America and JPMorgan Chase, suggests strong financial backing for Radius Recycling, Inc.[51][52] - The involvement of various banks as US A-1 and A-2 lenders indicates a robust financing structure for Radius Recycling, Inc.[53][54] - The management team across different entities is consistently led by W. Brandon Peele, highlighting leadership continuity[45][47] - The operational structure of multiple LLCs under Radius Recycling, Inc. indicates a strategy focused on regional market penetration[47] - The documentation reflects a complex financial network involving numerous lenders, which may enhance liquidity and operational flexibility for Radius Recycling, Inc.[60][61] - The amendments and agreements suggest ongoing strategic adjustments within Radius Recycling, Inc. to adapt to market conditions[46]
SCHNITZER STEEL(SCHN) - 2025 Q3 - Quarterly Results