Helios Technologies Enters Material Definitive Agreement

TL;DR

Helios Tech just signed a big deal, likely involving debt. Keep an eye on their financials.

AI Summary

On June 25, 2024, Helios Technologies, Inc. entered into a Material Definitive Agreement, specifically a credit agreement, which creates a direct financial obligation for the company. This agreement is part of their ongoing financial strategy and is being disclosed under Regulation FD.

Why It Matters

This filing indicates a significant financial commitment or change for Helios Technologies, potentially impacting its debt structure and future investments.

Risk Assessment

Risk Level: medium — Entering into new financial obligations can introduce leverage and financial risk, depending on the terms and the company's ability to manage the debt.

Key Players & Entities

• HELIOS TECHNOLOGIES, INC. (company) — Registrant
• June 25, 2024 (date) — Date of earliest event reported
• Florida (location) — State of incorporation
• 7456 16th St E, Sarasota, Florida 34243 (address) — Principal Executive Offices

FAQ

Key Financial Figures

• $500 million — ") in the aggregate principal amount of $500 million as of the Credit Facility Closing Date
• $300 million — ") in the aggregate principal amount of $300 million that will be funded in a single drawing
• $400 m — e additional term loans by a maximum of $400 million, subject to new or existing lende
• $1.2 billion — ated Credit Agreement are not to exceed $1.2 billion. Scheduled principal payments under t
• $3.75 million — following fiscal quarter, beginning at $3.75 million before increasing to $5.6 million in Ju
• $5.6 million — g at $3.75 million before increasing to $5.6 million in June 2026 and $7.5 million in June 2
• $7.5 million — easing to $5.6 million in June 2026 and $7.5 million in June 2028. All remaining principal a

Filing Documents

• hlio-20240625.htm (8-K) — 48KB
• hlio-ex10_1.htm (EX-10.1) — 1914KB
• hlio-ex99_1.htm (EX-99.1) — 21KB
• img252001787_0.jpg (GRAPHIC) — 3KB
• 0000950170-24-077641.txt ( ) — 2332KB
• hlio-20240625.xsd (EX-101.SCH) — 23KB
• hlio-20240625_htm.xml (XML) — 4KB

01 Entry Into a Material Definitive Agreement

Item 1.01 Entry Into a Material Definitive Agreement. On June 25, 2024 (the "Credit Facility Closing Date"), Helios Technologies, Inc., a Florida corporation ("Helios" or the "Company"), and certain of its subsidiaries party thereto as guarantors entered into a Third Amended and Restated Credit Agreement (the "Third Amended and Restated Credit Agreement") with PNC Bank, National Association ("PNC Bank"), as administrative agent, and the various lenders party thereto, which amends, restates and supersedes the Second Amended and Restated Credit Agreement dated as of October 28, 2020 (as amended, restated, modified or supplemented). The Third Amended and Restated Credit Agreement provides (i) a revolving credit facility ("Revolving Credit Facility") in the aggregate principal amount of $500 million as of the Credit Facility Closing Date and (ii) a five-year term loan facility ("Term Loan Facility") in the aggregate principal amount of $300 million that will be funded in a single drawing on the Credit Facility Closing Date, with the option to increase the revolver or incur one or more additional term loans by a maximum of $400 million, subject to new or existing lenders agreeing to participate in the increase and other customary conditions. The total commitments under the Third Amended and Restated Credit Agreement are not to exceed $1.2 billion. Scheduled principal payments under the Term Loan Facility are payable in quarterly installments beginning on September 28, 2024 and continuing on the last day of each following fiscal quarter, beginning at $3.75 million before increasing to $5.6 million in June 2026 and $7.5 million in June 2028. All remaining principal and unpaid accrued interest are due on the Term Loan Facility maturity date, which is June 25, 2029. Pursuant to the Third Amended and Restated Credit Agreement, Helios can select an interest rate for its Revolving Credit Facility and Term Loan Facility from the following options: Borrowings under the Re

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On June 26, 2024, the Company issued a press release in connection with Third Amended and Restated Credit Agreement. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits 10.1* Third Amended and Restated Credit Agreement, dated June 25, 2024, by and among Helios Technologies, Inc. as Borrower, the Guarantors party thereto, the financial institutions party thereto from time to time as lenders, and PNC Bank, National Association, as Administrative Agent (filed herewith). 99.1 Press release dated June 26, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). * Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company will furnish supplementally a copy of any omitted exhibits or schedules to the Securities and Exchange Commission upon request.

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 thereunto duly authorized. HELIOS TECHNOLOGIES, INC. Date: June 26, 2024 By: /s/ Sean Bagan Sean Bagan Chief Financial Officer (Principal Financial and Accounting Officer)

View Full Filing

View this 8-K filing on SEC EDGAR