UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
Date of Report (Date of earliest event reported): March 26, 2007
| Graco Inc. | ||
|---|---|---|
(Exact name of registrant as specified in its charter) |
| Minnesota | 001-9249 | 41-0285640 | ||
|---|---|---|---|---|
(State or other jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
| 88-11th Avenue Northeast Minneapolis, Minnesota |
55413 | |
|---|---|---|
(Address of principal executive offices) |
(Zip Code) |
Registrant's telephone number, including area code: (612) 623-6000
| Not Applicable | ||
(Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| [ } | Written communications pursuant to Rule-425 under the Securities Act (17 CFR 230.425) |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Summary of Prior Credit Agreement. As of December 31, 2004, Graco Inc. (“Graco”) entered into a credit agreement (the “2004 Credit Agreement”) with Wachovia Bank, National Association (“Wachovia”) which provided for a 364-day $50 million unsecured revolving credit facility with a $10 million sublimit for the issuance of standby letters of credit. On December 30, 2005, Wachovia extended the maturity date of this facility to March 31, 2006. All terms and conditions of the original agreement remained in effect with the following exception: for a leverage ratio less than or equal to 1.0x, the facility fee was reduced to 0.07% from 0.08% and the LIBOR Spread was reduced from 0.37% to 0.33%. The outstanding principal balance, accrued interest and all other amounts due were due and payable on March 31, 2006.
Summary of New Credit Agreement. On March 29, 2006, Graco and Wachovia entered into a credit agreement (“2006 Credit Agreement”) effective April 1, 2006, which provided for a 364-day $25 million unsecured revolving credit facility with a $10 million sublimit for the issuance of standby letters of credit. The terms and conditions of the 2006 Credit Agreement were the same as the terms and conditions of the 2004 Credit Agreement with the following exceptions: the interest rates and fees were reduced as indicated on the chart below; notices of proposed advances must be provided to Wachovia by noon local time; monthly payments of any advances and fees would commence on April 30, 2006; and all principal and interest was due and payable on March 31, 2007.
| Leverage Ratio |
LIBOR Spread |
Facility Fee |
All-In Drawn |
Standby LC Fee |
|---|---|---|---|---|
| < .5x | 0.33% | 0.07% | 0.40% | 0.40% |
| > .5x to 1.5x | 0.41% | 0.09% | 0.50% | 0.50% |
| > 1.5x to 2.5x | 0.54% | 0.11% | 0.65% | 0.65% |
| > 2.5x | 0.65% | 0.15% | 0.80% | 0.80% |
Extension of 2006 Credit Agreement. On March 26, 2007, Wachovia extended the maturity date of the 2006 Credit Agreement to May 31, 2007. All terms and conditions of the 2006 Credit Agreement will remain in effect. The outstanding principal balance, accrued interest and all other amounts due are due and payable on May 31, 2007.
Signature
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.
| GRACO INC. | |||
| Date: | March 30, 2007 | By: | /s/Karen Park Gallivan |
Karen Park Gallivan | |||
| Its: | Vice President, General Counsel and Secretary | ||