Note 14 - Subsequent Events

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

1

4

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Subsequent Event

s

Fourth Amended and Restated Credit Agreement

On

April 25, 2019,

the Company entered into the Fourth Amended and Restated Credit Agreement (the “Floor Plan Credit Agreement”) with the lenders signatory thereto and BMO Harris Bank N.A. (“BMO Harris”), as Administrative Agent and Collateral Agent (the “Agent”). The Floor Plan Credit Agreement replaced the

$875.0

million Third Amended and Restated Credit Agreement (the “Third Amended and Restated Floor Plan Credit Agreement”), dated as of

July 7, 2016,

by and between the Company, the lenders signatory thereto and BMO Harris as Agent. On

March 31, 2019,

the Company had approximately

$875.0

million outstanding under the Third Amended and Restated Floor Plan Credit Agreement.

Pursuant to the terms of the Floor Plan Credit Agreement, the aggregate loan commitment is

$1.0

billion. Borrowings under the Floor Plan Credit Agreement bear interest at an annual rate equal to the (A) the greater of (i)

zero

and (ii)

one

month LIBOR rate, determined on the last day of the prior month, plus (B)

1.25%

and are payable monthly.   Loans under the Floor Plan Credit Agreement for the purchase of used inventory are limited to

$150.0

million and loans for working capital purposes are limited to

$200.0

million. The Floor Plan Credit Agreement expires

June 30, 2022,

although the Agent has the right to terminate at any time upon

360

days written notice and the Company has the right to terminate at any time, subject to specified limited exceptions.

First Amendment to Working Capital Facility

On

April 25, 2019,

the Company entered into an agreement (the “First Amendment”) to amend its

$100

million working capital facility (the “Working Capital Facility”) with BMO Harris. The First Amendment (i) reduced the “Unused Fee Rate” from a per annum rate equal to

0.37%

to a per annum rate equal to

0.20%

and (ii) conformed certain definitions and affirmative and negative covenants with certain terms of the Floor Plan Credit Agreement.

Guaranty of Loan to

Tallman Truck Centre Limited

On

April 25, 2019,

the Company entered into a Guaranty Agreement (“Guaranty”) with Bank of Montreal (“BMO”), pursuant to which the Company agreed to guaranty up to

CAN$250

million (the “Guaranty Cap”) of certain credit facilities entered into by and between Tallman Truck Centre Limited (“TTCL”) and BMO, plus interest, fees and expenses. Interest, fees and expenses incurred by BMO to enforce it rights with respect to the guaranteed obligations and its rights against the Company under the Guaranty are

not

subject to the Guaranty Cap. TTCL is a subsidiary of RTC Canada, which the Company owns a

50%

equity interest in. In exchange for the Guaranty, TTCL is receiving a reduced rate of interest on its credit facilities with BMO.