OLD MARKET CAPITAL Corp 8-K, filed Dec 12, 2022
OLD MARKET CAPITAL Corp (OMCC)
About this 8-K
OLD MARKET CAPITAL Corp filed this 8-K on December 12, 2022, reporting on events of December 6, 2022.
Items reported
- Item 1.01: Entered into a material agreement
- Item 2.03: New debt or off-balance-sheet obligation
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 1.01 Entry into a Material Definitive Agreement.
On December 6, 2022 (the “Effective Date”), Nicholas Financial, Inc., a Florida corporation (“Nicholas-Florida”), and Nicholas Data Services, Inc., a Florida corporation (“NDS” and collectively with Nicholas-Florida, the “Borrowers”), two wholly-owned subsidiaries of Nicholas Financial, Inc. (the “Company”) entered into a Second Amendment to Loan and Security Agreement among the Borrowers, Wells Fargo Bank, N.A., as agent (the “Agent”), and the lenders that are party thereto (the “Amendment”), which amends the Loan and Security Agreement dated as of November 5, 2021 among the Borrowers, the Agent, and the lenders that are party thereto (the “Credit Agreement”).
Pursuant to the Amendment, the Agent and the lenders waived an event of default under the Credit Agreement previously disclosed on Current Report on Form 8-K filed on October 27, 2022, and, as of the Effective Date, the credit facility provided under the Credit Agreement (the “Credit Facility”) will no longer accrue interest at a default rate.
The Amendment reduced the maximum amount available under the Credit Facility from $175 million to $60 million, and also reduced the availability of funds under the Credit Facility from an advance rate of between 80% and 85% of the value of eligible receivables to an advance rate of 50% of the value of eligible receivables, and changed the maturity date of the Credit Facility from November 5, 2024 to May 31, 2023. The Company incurred non-refundable overall costs associated with the restructuring in the amount of $0.3 million.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The disclosure responsive to this Item is incorporated herein by reference to Item 1.01.
SIGNATURES
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.
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NICHOLAS FINANCIAL, INC. |
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(Registrant) |
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Date: December 9, 2022 |
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/s/ Irina Nashtatik |
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Irina Nashtatik |
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Chief Financial Officer (Principal Financial Officer) |