On July 29, 2008, Avocent Corporation (the “Company”) entered into a First Amendment to Credit Agreement (the “First Amendment”) amending its Credit Agreement with Regions Bank dated as of June 16, 2006. Under the First Amendment, the Company added a $90 million term loan facility to its previously-existing $250,000,000 five-year revolving bank line of credit. The borrowings bear an initial interest rate of LIBOR plus 175 basis points, and are guaranteed by the Company’s domestic subsidiaries. The First Amendment also contains representations, warranties, and covenants customarily found in similar financings. On August 4, 2008, the Company disseminated a press release, which is incorporated herein by reference, with additional details about the First Amendment, and the information contained in that press release is incorporated herein by reference and filed as Exhibit 99.17 hereto.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On July 29, 2008, Avocent Corporation (the “Company”) entered into a First Amendment to Credit Agreement (the “First Amendment”) amending its Credit Agreement with Regions Bank dated as of June 16, 2006. Under the First Amendment, the Company added a $90 million term loan facility to its previously-existing $250,000,000 five-year revolving bank line of credit. The borrowings bear an initial interest rate of LIBOR plus 175 basis points, and are guaranteed by the Company’s domestic subsidiaries. On July 29, 2009, the Company drew down $90 million on the term loan facility and currently has $165 million outstanding on the credit facilities. The First Amendment also contains representations, warranties, and covenants customarily found in similar financings. On August 4, 2008, the Company disseminated a press release, which is incorporated herein by reference, with additional details about the First Amendment, and the information contained in that press release is incorporated herein by reference and filed as Exhibit 99.17 hereto.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits. | |||
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Exhibit Number |
Description of Exhibit |
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| 99.17 | Press Release issued August 4, 2008 | |||
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.
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AVOCENT CORPORATION |
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Date: |
August 4, 2008 |
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By: |
/s/ Samuel F. Saracino |
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Executive Vice President of Legal and Corporate Affairs, |
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General Counsel, and Secretary |
EXHIBIT INDEX
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Exhibit Number |
Description of Exhibit |
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| 99.17 | Press Release issued August 4, 2008 |