Americas Car-Mart Enters Material Definitive Agreement

TL;DR

AMSC just signed a big financial deal, filing 8-K today.

AI Summary

On February 28, 2024, Americas Car-Mart, Inc. entered into a material definitive agreement related to a direct financial obligation. The company, incorporated in Texas with IRS number 630851141, filed this 8-K report on March 5, 2024, detailing the creation of this obligation.

Why It Matters

This filing indicates a significant financial commitment or obligation for Americas Car-Mart, Inc., which could impact its financial standing and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and creating financial obligations can introduce financial risks and impact the company's balance sheet.

Key Players & Entities

• AMERICAS CAR-MART, INC. (company) — Registrant
• February 28, 2024 (date) — Date of earliest event reported
• March 5, 2024 (date) — Filing date
• Texas (jurisdiction) — State of incorporation
• 630851141 (identifier) — IRS Number

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share CRMT NASDAQ Global Select M
• $600 million — ces the total permitted borrowings from $600 million to $340 million, including a reduction
• $340 m — rmitted borrowings from $600 million to $340 million, including a reduction in the Col
• $570 million — Colonial revolving line of credit from $570 million to $310 million. The ACM-TCM revolving
• $310 million — ing line of credit from $570 million to $310 million. The ACM-TCM revolving line of credit r
• $30 million — TCM revolving line of credit remains at $30 million. The lending group now includes BMO Har
• $88 million — roup now includes BMO Harris Bank N.A. ($88 million commitment), Axos Bank ($84 million com
• $84 million — A. ($88 million commitment), Axos Bank ($84 million commitment), BOKF, NA d/b/a BOK Financi
• $55 million — mitment), BOKF, NA d/b/a BOK Financial ($55 million commitment), MUFG Union Bank, N.A. ($48
• $48 million — ion commitment), MUFG Union Bank, N.A. ($48 million commitment, down from $84 million), Fir
• $25 million — from $84 million), First Horizon Bank ($25 million commitment, down from $75 million), Com
• $75 million — Bank ($25 million commitment, down from $75 million), Commerce Bank ($25 million commitment
• $40 million — Bank ($25 million commitment, down from $40 million), and Arvest Bank ($15 million commitme
• $15 million — own from $40 million), and Arvest Bank ($15 million commitment, down from $40 million). In
• $40 million — Bank ($15 million commitment, down from $40 million). In connection with the Amendment, Wel

Filing Documents

• f8k_030524.htm (8-K) — 33KB
• exh_107.htm (EX-10.7) — 73KB
• sig_vickie.jpg (GRAPHIC) — 5KB
• sig_cal.jpg (GRAPHIC) — 6KB
• sig_oneil.jpg (GRAPHIC) — 5KB
• sig_schae.jpg (GRAPHIC) — 8KB
• sig_erick.jpg (GRAPHIC) — 7KB
• sig_fhorizon.jpg (GRAPHIC) — 7KB
• sig_emley.jpg (GRAPHIC) — 8KB
• sig_roman.jpg (GRAPHIC) — 8KB
• sig_alexander.jpg (GRAPHIC) — 9KB
• 0001171843-24-001193.txt ( ) — 376KB
• crmt-20240228.xsd (EX-101.SCH) — 3KB
• crmt-20240228_lab.xml (EX-101.LAB) — 33KB
• crmt-20240228_pre.xml (EX-101.PRE) — 22KB
• f8k_030524_htm.xml (XML) — 4KB

01

Item 1.01. Entry into a Material Definitive Agreement. On February 28, 2024, America's Car-Mart, Inc., a Texas corporation (the "Company"), and its subsidiaries, Colonial Auto Finance, Inc., an Arkansas corporation ("Colonial"), America's Car Mart Inc., an Arkansas corporation ("ACM"), and Texas Car-Mart, Inc., a Texas corporation ("TCM" and collectively with Colonial and ACM, the "Borrowers"), entered into Amendment No. 6 to the Third Amended and Restated Loan and Security Agreement ("Agreement"), dated as of September 30, 2019, by and among the Company, Colonial, ACM, TCM and a group of lenders, as previously amended on October 29, 2020, February 10, 2021, September 29, 2021, April 22, 2022 and February 22, 2023. Amendment No. 6 to the Agreement (the "Amendment") extends the term of the Company's revolving credit facilities to September 30, 2025 and reduces the total permitted borrowings from $600 million to $340 million, including a reduction in the Colonial revolving line of credit from $570 million to $310 million. The ACM-TCM revolving line of credit remains at $30 million. The lending group now includes BMO Harris Bank N.A. ($88 million commitment), Axos Bank ($84 million commitment), BOKF, NA d/b/a BOK Financial ($55 million commitment), MUFG Union Bank, N.A. ($48 million commitment, down from $84 million), First Horizon Bank ($25 million commitment, down from $75 million), Commerce Bank ($25 million commitment, down from $40 million), and Arvest Bank ($15 million commitment, down from $40 million). In connection with the Amendment, Wells Fargo Bank, N.A. and CIBC Bank USA withdrew from the group of lenders. The Amendment also restores the accordion feature of the credit facilities back to $100,000,000 as of February 28, 2024 and makes certain other adjustments and modifications to the terms of the Agreement. At January 31, 2024, the end of the Company's third fiscal quarter, there was approximately 125.6 million in additional availability under the Agre

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth above under Item 1.01 is hereby incorporated by reference into this Item 2.03.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits. 10.1 Third Amended and Restated Loan and Security Agreement dated September 30, 2019, among America's Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkansas corporation, America's Car Mart, Inc., an Arkansas corporation, and Texas Car-Mart, Inc., a Texas corporation, as Borrowers; and certain financial institutions, as Lenders, with BMO Harris Bank, N.A., as Agent, Lead Arranger and Book Manager (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on October 1, 2019). 10.2 Amendment No. 1 to Third Amended and Restated Loan and Security Agreement dated October 29, 2020, among America's Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkansas corporation, America's Car Mart, Inc., an Arkansas corporation, and Texas Car-Mart, Inc., a Texas corporation, as Borrowers; and certain financial institutions, as Lenders, with BMO Harris Bank, N.A., as Agent, Lead Arranger and Book Manager (Incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on November 4, 2020). 10.3 Amendment No. 2 to Third Amended and Restated Loan and Security Agreement dated February 10, 2021, among America's Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkansas corporation, America's Car Mart, Inc., an Arkansas corporation, and Texas Car-Mart, Inc., a Texas corporation, as Borrowers; and certain financial institutions, as Lenders, with BMO Harris Bank, N.A., as Agent, Lead Arranger and Book Manager (Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on February 16, 2021). 10.4 Amendment No. 3 to Third Amended and Restated Loan and Security Agreement dated September 29, 2021, among America's Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkansas corpora

SIGNATURES

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. America's Car-Mart, Inc. Date: March 5, 2024 /s/ Vickie D. Judy Vickie D. Judy Chief Financial Officer (Principal Financial Officer)

View Full Filing

View this 8-K filing on SEC EDGAR