Item 1.01 Entry into a Material Definitive Agreement.
First Amendment to Fifth Amended and Restated Floor Plan Credit Agreement
Effective May 31, 2023, Rush Enterprises, Inc. (the “Company”) and certain of its subsidiaries (the Company and such subsidiaries collectively, “Rush”) entered into the First Amendment to Fifth Amended and Restated Credit Agreement (the “First Rush Floor Plan Amendment”) with the Lenders signatory thereto (the “Lenders”) and BMO Harris Bank N.A., as administrative agent and collateral agent for the Lenders (the “Administrative Agent”), which amended that certain Fifth Amended and Restated Credit Agreement, dated as of September 14, 2021, among Rush, the Lenders and Administrative Agent (the “Rush Floor Plan Credit Agreement”).
Pursuant to the terms of the First Rush Floor Plan Amendment, the Rush Floor Plan Credit Agreement was amended to change the Benchmark (as defined in the First Rush Floor Plan Amendment) interest rate from a rate based on LIBOR (as defined in the Rush Floor Plan Credit Agreement) to a rate based on Term SOFR (as defined in the First Rush Floor Plan Amendment) and to make other corresponding changes to reflect the transition from LIBOR (as defined in the Rush Floor Plan Credit Agreement) to SOFR (as defined in the First Rush Floor Plan Amendment). Borrowings under the Rush Floor Plan Credit Agreement will now bear interest per annum, payable monthly, at (A) the greater of (i) zero and (ii) Term SOFR, plus (B) 1.20%.
The foregoing description of the First Rush Floor Plan Amendment is qualified in its entirety by reference to the full text of the First Rush Floor Plan Amendment, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated in this Item 1.01 by reference.
First Amendment to Amended and Restated BMO Wholesale Financing and Security Agreement
Effective May 31, 2023, Rush Truck Centres of Canada Limited (“RTC-Candada”), a subsidiary of the Company, entered into the First Amendment to the Amended and Restated BMO Wholesale Financing and Security Agreement (the “First RTC-Canada Floor Plan Amendment”) with Bank of Montreal (“BMO”), which amended that certain Amended and Restated BMO Wholesale Financing and Security Agreement, dated as of July 15, 2022, among RTC-Canada and BMO (the “RTC-Canada Floor Plan Credit Agreement”).
Pursuant to the terms of the First RTC-Canada Floor Plan Amendment, the RTC-Canada Floor Plan Credit Agreement was amended to change all references to LIBOR (as defined in the RTC-Canada Floor Plan Credit Agreement) with respect to advances required to be made in USD dollars to SOFR (as defined in the First RTC-Canada Floor Plan Amendment). Borrowings under the RTC-Canada Floor Plan Credit Agreement with respect to advances required to be made in USD dollars will now bear interest per annum, payable monthly, at Term SOFR (as defined in the First RTC-Canada Floor Plan Amendment), plus 1.20%.
The foregoing description of the First RTC-Canada Floor Plan Amendment is qualified in its entirety by reference to the full text of the First RTC-Canada Floor Plan Amendment, which is attached as Exhibit 10.2 to this Current Report on Form 8-K and incorporated in this Item 1.01 by reference.