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Item 1.01
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Entry into a Material Definitive Agreement
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On July 10, 2026, The Davey Tree Expert Company ("Davey Tree" or the "Company") entered into a Fifteenth Amendment (the "Amendment") to the Receivables Financing Agreement, dated as of May 9, 2016 (as amended, the "RFA"), by and among Davey Tree, as initial Servicer, Davey Receivables LLC, an Ohio limited liability company, special purpose entity and wholly-owned subsidiary of Davey Tree, as Borrower, and PNC Bank, National Association, as LC Bank, Lender and Administrative Agent ("PNC"), and the other lenders party thereto. The RFA was entered into as part of an accounts receivable securitization program (the "AR Securitization Facility").
Among other things, the Amendment (i) extended the scheduled termination date of the RFA, which was set to expire July 18, 2026, for another two years, until July 10, 2028, unless terminated earlier pursuant to the terms of the RFA; (ii) removed the SOFR Adjustment (as defined in the RFA) of 0.10% on borrowings; and (iii) added a financial covenant providing that the Company is required to maintain a maximum Leverage Ratio (as defined in the RFA) not to exceed 3.75 to 1.00.
In addition, the Letter of Credit ("LC") issuance fee, payable on each settlement date, was increased to the amount of 1.00% per annum on the aggregate amount of all LCs outstanding plus any Outstanding Reimbursement Obligations (as defined in the RFA).
The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment, a copy of which is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
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Item 2.03
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Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
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See the information set forth in Item 1.01 of this Current Report on Form 8-K, which is incorporated herein by reference.