Blue Bird Body Company’s $41.9 Million Credit Agreement Amend

Jones Day represented Bank of Montreal, the administrative agent.

On May 7, 2020, Blue Bird Corporation  entered into that certain Second Amendment, dated as of May 7, 2020, by and among the Company, the Borrower, Bank of Montreal, as Administrative Agent and the Lenders party thereto. The Second Amendment amended the Credit Agreement, dated as of December 12, 2016,  (the “Credit Agreement”), as amended by that certain First Amendment to Credit Agreement, dated as of September 13, 2018 (the “First Amendment”), and as further amended by the Second Amendment, the “Amended Credit Agreement”), by and among the Company, School Bus Holdings, Inc. and certain of its subsidiaries, including Blue Bird Body Company as the borrower, and Bank of Montreal, as Administrative Agent and an Issuing Bank, Fifth Third Bank, as Co-Syndication Agent and an Issuing Bank, and Regions Bank, as Co-Syndication Agent, and certain other financial institutions from time to time party thereto.

The Second Amendment, among other things, provides for an aggregate lender commitment of $41.9 million of additional revolving commitments, which Incremental Revolving Commitments are intended to be used for working capital, to fund general corporate purposes and to pay transaction costs, fees and expenses related thereto and in connection with the Second Amendment. The Incremental Revolving Commitments are subject to the satisfaction of customary closing conditions, including the accuracy in all material respects of the representations and warranties under the Amended Credit Agreement and the absence of a default or event of default under the Amended Credit Agreement.

The revolving commitments under the Amended Credit Agreement (comprised of the initial $75 million of revolving commitments, which was increased to $100 million pursuant to the First Amendment and after giving effect to the Incremental Revolving Commitments under the Second Amendment will be $150 million, the “Revolving Facility”) will mature on September 13, 2023, which is the fifth anniversary of the effective date of the First Amendment.

The Jones Day team was led by Lewis Grimm (Picture).

Involved fees earner: Lewis Grimm – Jones Day;

Law Firms: Jones Day;

Clients: Bank of Montreal;

Author: Ambrogio Visconti