Americas Carmart Inc 8-K, filed Jan 6, 2021
Americas Carmart Inc (CRMT)
About this 8-K
Americas Carmart Inc filed this 8-K on January 6, 2021, reporting on events of December 31, 2020.
Items reported
- Item 2.03: New debt or off-balance-sheet obligation
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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CURRENT REPORT
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On December 31, 2020, America's Car-Mart, Inc. (the "Company") through its operating subsidiaries exercised an option under its existing credit agreement to increase its total revolving credit facilities by $85 million from $241 million to $326 million. The increase in the total revolving credit commitments is being made pursuant to an accordion feature of the Third Amended and Restated Loan and Security Agreement (the "Agreement"), dated as of September 30, 2019 and most recently amended on October 29, 2020, by and among the Company, its subsidiaries Colonial Auto Finance, Inc., America's Car Mart, Inc. and Texas Car-Mart, Inc, and a group of lenders. The accordion feature allows the Company to increase the total revolver commitments by up to $100 million (up to $341 million in total commitments) with the written consent of BMO Harris Bank N.A., as agent, and the consent of any lender having a new or increased commitment. In connection with this increase, MUFG Union Bank, N.A. joined the lending group as a new lender with a commitment of $50 million. The lending group now also includes BMO Harris Bank, N.A. ($71 million commitment), Wells Fargo Bank, N.A. ($50 million commitment, up from $30 million), BOKF, NA d/b/a BOK Financial ($50 million commitment), First Horizon Bank ($50 million commitment, up from $40 million), Arvest Bank ($30 million commitment), and Commerce Bank ($25 million commitment, up from $20 million).
In addition to the increased permitted borrowings, the Company designated BOKF, NA d/b/a BOK Financial and Wells Fargo Bank, N.A. as co-syndication agents and First Horizon Bank and MUFG Union Bank, N.A. as co-documentation agents under the Agreement. All other material terms of the Agreement remain in effect as previously disclosed by the Company.
On December 31, 2020, the Company issued a press release announcing an increase in its permitted borrowings under the Agreement and the addition of a new lender to the lending group. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
In accordance with General Instruction B.2., the information contained in Item 7.01 of this Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act. The Company undertakes no obligation to update or revise this information.
(d) Exhibits.
| 99.1 | Press release announcing new lender and expanded permitted borrowings | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| America's Car-Mart Inc. | ||
| Date: January 5, 2021 | By: | /s/ Vickie D. Judy |
| Vickie D. Judy | ||
| Chief Financial Officer (Principal Financial Officer) | ||
EXHIBIT 99.1
America’s Car-Mart, Inc. Announces Increase of Revolving Line of Credit to $326 Million
Rogers, Arkansas, Dec. 31, 2020 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (the “Company”) today announced it has utilized a portion of the accordion feature under its Third Amended and Restated Loan and Security Agreement (“Agreement”).
The increase allows for total permitted borrowings of $326 million up from $241 million. MUFG Union Bank, N.A. (MUFG) joined the lending group as a new lender with a commitment of $50 million. The lending group also includes BMO Harris Bank, N.A., Agent for the lending group ($71 million commitment), Wells Fargo Bank, N.A. ($50 million commitment, up from $30 million), BOKF, NA d/b/a BOK Financial ($50 million commitment), First Horizon Bank ($50 million commitment, up from $40 million), Arvest Bank ($30 million commitment), and Commerce Bank ($25 million commitment, up from $20 million). In addition to the increased permitted borrowings, the following designations for the lending group were authorized: (i) BOKF, NA d/b/a BOK Financial and Wells Fargo Bank, N.A. were designated as Co-Syndication Agents under the Loan Agreement and (ii) First Horizon Bank and MUFG Union Bank, N.A. were designated as Co-Documentation Agents under the Loan Agreement.
“We appreciate the continued commitment of our existing lenders and are excited to have MUFG as a new partner,” said Vickie Judy, Chief Financial Officer. “This increase will allow us to continue to grow and make the necessary investments in key areas to provide a foundation for servicing a larger number of customers. The expanded facility will allow us to support our commitment and promise to do whatever it takes to provide customers with excellent service, care and compassion before, during and after the vehicle sale and keep them on the road with peace of mind.”
About America's Car-Mart
America’s Car-Mart operates automotive dealerships in twelve states and is one of the largest publicly-held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. The Company specializes in the sale of quality, pre-owned vehicles, and features flexible used car financing options for customers with bad credit, no credit, repossessions or even past bankruptcy. The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in smaller cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers. For more information about America’s Car-Mart, including investor presentations, please visit our website at www.car-mart.com.
Contacts:Jeff Williams, CEO at (479) 464-9944 or Vickie Judy, CFO at (479) 464-9944