WORLD ACCEPTANCE CORPORATION (NASDAQ:WRLD) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.Entry into a Material Definitive Agreement.
Thirteenth Amendment to Amended and Restated Revolving Credit Facility
On December 14, 2018, World Acceptance Corporation (the “Company”) entered into a thirteenth amendment (the “Thirteenth Amendment”) to the Amended and Restated Revolving Credit Agreement, originally dated as of September 17, 2010 (as cumulatively amended, the “Revolving Credit Agreement”), among the Company, the lenders named therein, and Wells Fargo Bank, National Association, as successor Administrative Agent and successor Collateral Agent.
The Thirteenth Amendment amends the Revolving Credit Agreement to, among other things: (i) increase the accordion feature to permit a maximum of aggregate commitments of $600,000,000 (increased from $500,000,000), provided that certain conditions are met; (ii) modify the per annum interest rate on borrowings under the Revolving Credit Agreement from 4.0% to an initial fixed rate of 4.0% and then a subsequent variable rate between 3.00% and 4.00% (in each case, in excess of one-month LIBOR) based on EBITDA Ratio metrics referenced in Section 1.2 of the Thirteenth Amendment; (iii) add new definitions for “Consolidated EBITDA Ratio Net Income “and “EBITDA Ratio,” which will be used to determine the variable interest rate on a monthly basis; (iv) revise the section regarding changes in accounting principles to include any change in a pricing grid; and (v) require consolidated balance sheets and consolidated statements of income and retained earnings for the Company and certain of its subsidiaries to be provided to the Administrative Agent on a monthly basis. The variable interest rate will take effect for borrowings after January 1, 2019.
The foregoing description of the Thirteenth Amendment is only a summary and is qualified in its entirety by reference to the full text of the Thirteenth Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
Item 8.01.Other Events.
On December 16, 2018, the Company’s Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $75.0 million of its outstanding common stock, inclusive of the amount that remains available for repurchases under the prior repurchase authorization of $25.0 million announced on March 11, 2015. The timing and actual number of shares repurchased will depend on a variety of factors, including the stock price, corporate and regulatory requirements, available funds, alternative uses of capital, restrictions under the Revolving Credit Agreement, and other market and economic conditions. The Company’s stock repurchase program may be suspended or discontinued at any time.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
* Submitted electronically herewith.
WORLD ACCEPTANCE CORP Exhibit
EX-10.1 2 wrld_12-17x18xex101.htm EXHIBIT 10.1 Exhibit THIRTEENTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AGREEMENTThis Thirteenth Amendment to Amended and Restated Revolving Credit Agreement (herein,…
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About WORLD ACCEPTANCE CORPORATION (NASDAQ:WRLD)
World Acceptance Corporation operates a small-loan consumer finance business in 15 states and Mexico as of March 31, 2016. The Company offers short-term small installment loans, medium-term larger installment loans, related credit insurance and ancillary products and services to individuals. The Company offers standardized installment loans generally between $300 and $4,000 through 1,339 branches in Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Texas, Tennessee, Wisconsin and Mexico as of March 31, 2016. The Company generally serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses and credit card lenders. In the United States branches, the Company also offers income tax return preparation services to its loan customers and other individuals.
