Rollins 8-K 2008
SECURITIES AND EXCHANGE COMMISSION
washington, d.c. 20549
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 28, 2008
(Exact name of registrant as specified in its charter)
2170 Piedmont Road, NE, Atlanta, Georgia 30324
(Address of principal executive office) (zip code)
Registrant's telephone number, including area code: (404) 888-2000
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 (see General Instruction A.2. below):
Item 1.01. Entry into a Material Definitive Agreement.
On March 28, 2008, Rollins, Inc. (“Rollins”), a Delaware corporation, entered into a revolving credit agreement (the “Revolving Credit Agreement”) with SunTrust Bank as Administrative Agent and Lender and Bank of America, N.A. as Syndication Agent and Lender. The Revolving Credit Agreement is filed as Exhibit 99.1 hereto and is incorporated herein by reference.
The Revolving Credit Agreement is guaranteed by certain of Rollins’ domestic subsidiaries.
Neither Rollins nor any of its affiliates has any material relationship with any of the parties to the Revolving Credit Agreement apart from Rollins’ ownership of its domestic subsidiaries and ordinary banking relationships.
The Revolving Credit Agreement has a general term of five years and provides for an unsecured line of credit of up to $175 million, which includes a $75 million letter of credit subfacility, and a $10 million swingline subfacility. Under certain circumstances more particularly described in the Revolving Credit Agreement, the line of credit may be increased by an additional amount of up to $75 million. The maturity date of all revolving loans under the Credit Agreement is March 27, 2013.
Revolving loans under the Revolving Credit Agreement bear interest at one of the following two rates, at Rollins’ election:
Financial Covenants and Events of Default.
The Revolving Credit Agreement contains customary terms and conditions, including, without limitation, certain financial covenants including covenants restricting Rollins’ ability to incur certain indebtedness or liens, or to merge or consolidate with or sell substantially all of its assets to another entity. Further, the Revolving Credit Agreement contains financial covenants restricting Rollins’ ability to permit the ratio of Rollins’ consolidated debt to EBITDA to exceed 2.5 to 1.
As of the date hereof, Rollins has no borrowings outstanding under the Revolving Credit Agreement.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information disclosed above under Item 1.01 is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
Pursuant to the requirements of the Securities Exchange Act of 1934, Rollins, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.