EnerSys Reports Material Agreement & New Financial Obligation

TL;DR

**EnerSys just reported a new material agreement and financial obligation, but the details are missing.**

AI Summary

EnerSys filed an 8-K on January 11, 2024, to report an "Entry into a Material Definitive Agreement" and the "Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement." While the filing indicates these significant events, it does not provide specific details about the nature of the agreement or the financial obligation. This matters to investors because these items can significantly impact EnerSys's financial health and future operations, but without specifics, it creates uncertainty.

Why It Matters

This filing signals that EnerSys has entered into a significant new agreement and taken on a new financial obligation, which could alter its financial position and future business prospects. Investors need more details to assess the potential impact on the company's value.

Risk Assessment

Risk Level: medium — The filing indicates significant financial and contractual changes without providing any details, creating uncertainty and potential risk for investors.

Analyst Insight

A smart investor would await further disclosures from EnerSys regarding the specifics of the material agreement and financial obligation to understand their potential impact before making any investment decisions. The lack of detail creates uncertainty.

Key Players & Entities

• EnerSys (company) — the registrant filing the 8-K
• New York Stock Exchange (company) — where EnerSys's Common Stock is registered
• ENS (company) — trading symbol for EnerSys

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share ENS New York St
• $300 million — 1, 2024, EnerSys (the "Company") issued $300 million in aggregate principal amount of its 6.

Filing Documents

• d675978d8k.htm (8-K) — 34KB
• d675978dex42.htm (EX-4.2) — 283KB
• d675978dex991.htm (EX-99.1) — 8KB
• g675978g20i02.jpg (GRAPHIC) — 4KB
• 0001193125-24-006626.txt ( ) — 512KB
• ens-20240111.xsd (EX-101.SCH) — 3KB
• ens-20240111_lab.xml (EX-101.LAB) — 17KB
• ens-20240111_pre.xml (EX-101.PRE) — 11KB
• d675978d8k_htm.xml (XML) — 3KB

01

Item 1.01 Entry into a Material Definitive Agreement On January 11, 2024, EnerSys (the "Company") issued $300 million in aggregate principal amount of its 6.625% Senior Notes due 2032 (the "Notes"). The Notes were issued pursuant to an indenture among the Company, its subsidiaries named as guarantors therein and MUFG Union Bank, N.A. as trustee, dated as of April 23, 2015 (the "Base Indenture"), as supplemented by that certain fifth supplemental indenture among the Company, the Guarantors (as defined below) and U.S. Bank Trust Company, National Association, as successor in interest to U.S. Bank National Association, as successor in interest to MUFG Union Bank, N.A., as trustee (the "Trustee"), dated as of January 11, 2024 (the "Fifth Supplemental Indenture" and, together with the Base Indenture, the "Indenture"). The Company intends to use the net proceeds from the offering to repay and retire a portion of its outstanding borrowings under the initial term loans and the A-2 and the A-3 senior secured term loans portion of its existing credit facility. The Company intends to use the remaining net proceeds for general corporate purposes, including to repay a portion of the outstanding borrowings under the revolving portion of its existing credit facility (without a reduction in commitment). The exact allocation of such proceeds and the timing thereof is at the discretion of the Company's management. The Notes bear interest at a rate of 6.625% per annum accruing from January 11, 2024. Interest is payable semiannually in arrears on January 15 and July 15 of each year, commencing on July 15, 2024. The Notes will mature on January 15, 2032. The Notes are unsecured and unsubordinated obligations of the Company. The Notes are fully and unconditionally guaranteed (the "Guarantees"), jointly and severally, on a senior unsecured basis by the Company's subsidiaries the guarantee its existing credit facility (the "Guarantors"). The Notes and the Guarantees are the Company'

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation or an Off-Balance Sheet Arrangement of the Registrant The information set forth in Item 1.01 above with respect to the Notes and the Indenture is hereby incorporated by reference into this Item 2.03 insofar as it relates to the creation of a direct financial obligation.

01

Item 8.01 Other Events On January 11, 2024, the Company issued a press release announcing that it closed the offering of the Notes. A copy of the press release announcing the closing of the offering is filed herewith as Exhibit 99.1 and is incorporated herein by reference.

Financial Statements and Exhibits

Financial Statements and Exhibits (d) Exhibits Exhibit No. Description 4.1 Indenture, dated as of April 23, 2015, among EnerSys, the Guarantors party thereto and MUFG Union Bank, N.A., as Trustee (incorporated by reference to Exhibit 4.1 to EnerSys' Current Report on Form 8-K filed on April 23, 2015). 4.2 Fifth Supplemental Indenture, dated as of January 11, 2024, among EnerSys, the Guarantors party thereto and U.S. Bank Trust Company, National Association, as successor in interest to U.S. Bank National Association, as successor in interest to MUFG Union Bank, N.A., as Trustee. 4.3 Form of 6.625% Senior Notes due 2032 (included in Exhibit 4.2 hereto). 99.1 Press release, dated January 11, 2024, of EnerSys. 104 Cover Page Interactive Data File (formatted as inline XBRL).

SIGNATURES

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. EnerSys (Registrant) Date: January 11, 2024 By: /s/ Andrea J. Funk Andrea J. Funk Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR