Item 1.01 Entry into a Material Definitive Agreement.
Consent under Credit Agreement
On November 4, 2022, DENTSPLY SIRONA Inc. (the “Company”) obtained the consent of the requisite lenders under its revolving credit facility, dated July 27, 2018, with JPMorgan Chase Bank, N.A., as administrative agent (the “Credit Agreement”), to further extend the time period for delivery of the Company’s unaudited financial statements for the fiscal quarter ended June 30, 2022 (the “Q2 Financials”) and the related certificates until November 14, 2022; provided, that the failure by the Company to deliver the Q2 Financials together with the related covenant compliance deliverables, all on or prior to November 14, 2022, would constitute an immediate event of default. As of November 9, 2022, the Company has delivered the Q2 Financials, along with the related certificates, to the lenders under the Credit Agreement.
Consent under Note Purchase Agreements
On November 5, 2022, the Company entered into the following agreements (collectively, the “Consent Agreements”):
a.Note Purchase Agreement Amendment No. 2 and Consent, dated as of November 5, 2022, by and among the Company and the noteholders with respect to the Note Purchase Agreement, dated as of December 11, 2015;
b.Note Purchase and Guarantee Agreement Amendment No. 2 and Consent, dated as of November 5, 2022, by and among the Company, Sirona Dental Services GmbH and the noteholders with respect to the Note Purchase Agreement and Guarantee Agreement, dated as of October 27, 2016; and
c.Note Purchase Agreement Amendment No. 2 and Consent, dated as of November 5, 2022, by and among the Company and the noteholders with respect to the Note Purchase Agreement, dated as of June 24, 2019.
The Consent Agreements acknowledge the Company’s intent to restate its (i) quarterly financial statements for the fiscal quarter ended September 30, 2021 (the “Q3 2021 Financials”) and (ii) annual financial statements for the fiscal year ended December 31, 2021 (together with the Q3 2021 Financials, the “Restated 2021 Financials”).
Pursuant to the Consent Agreements, the Company and the applicable noteholders have agreed, among other things, to an extension of time for delivery of the Company’s unaudited financial statements for the fiscal quarters ended March 31, 2022 (the “Q1 Financials”) and the Q2 Financials and the related certificates, until the earlier of (i) November 14, 2022, or (ii) the date the Q2 Financials are delivered under the Credit Agreement (the “Second Extended Delivery Date”); provided, that the failure by the Company to deliver the Q1 Financials, the Q2 Financials and the Restated 2021 Financials, in each case together with the related covenant compliance deliverables, all on or prior to the Second Extended Delivery Date, would constitute an immediate event of default. As of November 9, 2022, the Company has delivered the Q1 Financials, the Q2 Financials and the Restated 2021 Financials, along with the related certificates, to the noteholders.
The foregoing summaries of the consent under the Credit Agreement and the Consent Agreements are qualified in their entirety by reference to the text of the agreements, which will be filed as exhibits to the Company’s Form 10-Q for the quarter ending September 30, 2022.