FRANKLIN COVEY CO. (NYSE:FC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
the Seventh Modification Agreement to its existing amended and
restated secured credit agreement (the Restated Credit Agreement)
with JPMorgan Chase Bank, N.A. (the Lender). The Lender also
provides the majority of the Company’s day-to-day banking
services.
extend the maturity date of the Restated Credit Agreement from
March 31, 2019 to March 31, 2020.
covenants that include (i) a Funded Debt to EBITDAR ratio of less
than 3.0 to 1.0; (ii) a Fixed Charge Coverage ratio greater than
1.15 to 1.0 as discussed above; (iii) an annual limit on capital
expenditures (excluding capitalized curriculum development) of
$8.0 million; and (iv) outstanding borrowings on the revolving
line of credit may not exceed 150 percent of consolidated
accounts receivable. The other key terms and conditions of the
Seventh Modification Agreement are substantially the same as
those defined in the Restated Credit Agreement and subsequent
modifications. The Restated Credit Agreement was described in the
Company’s Form 8-K filed on March 17, 2011, which information is
incorporated by reference herein.
Company and certain of its subsidiaries entered into a new
Consent and Agreement of Guarantor.
Restated Credit Agreement does not purport to be complete and is
qualified in its entirety by reference to the text of the Seventh
Modification Agreement to the Restated Credit Agreement and the
Consent and Agreement of Guarantor, which are filed as Exhibits
10.1 and 10.2 attached hereto.
| Item 2.03 |
Creation of a Direct Financial Obligation or an
Obligation Under an Off-Balance Sheet Arrangement |
entered into the Seventh Modification Agreement and Consent and
Agreement of Guarantor with its primary Lender as described above
in Item 1.01. The information in Item 1.01 is incorporated by
reference herein.
| Item 9.01 |
Financial Statements and Exhibits
|
|
(d)
|
Exhibits:
|
| 10.1 |
Seventh Modification Agreement by and among JPMorgan
Chase Bank, N.A., Franklin Covey Co., and the subsidiary guarantors signatory thereto, dated May 31, 2017. |
| 10.2 |
Consent and Agreement of Guarantor by and between
JPMorgan Chase Bank, N.A., Franklin Covey Co., and the subsidiary guarantors signatory thereto, dated May 31, 2017. |
About FRANKLIN COVEY CO. (NYSE:FC)
Franklin Covey Co. is a global company specializing in performance improvement. The Company’s segments are Direct Offices, Strategic Markets, Education practice and International Licensees. The Direct Offices segment consists of its geographic sales offices that serve the United States and Canada, its international sales offices located in Japan, the United Kingdom and Australia, and its public programs group. The Strategic Markets segment includes its government services office, the Sales Performance practice, the Customer Loyalty practice, and a new Global 50 group, which is specifically focused on sales to large, multi-national organizations. The Education practice segment consists of its domestic and international Education practice operations, which are centered on sales to educational institutions, such as elementary schools, high schools, and colleges and universities. The International Licensees segment consists of its international licensees’ royalty revenues. FRANKLIN COVEY CO. (NYSE:FC) Recent Trading Information
FRANKLIN COVEY CO. (NYSE:FC) closed its last trading session up +0.90 at 20.65 with 66,713 shares trading hands.