Americas Car-Mart Files 8-K with Material Agreement

TL;DR

ACMT filed an 8-K on 9/16 for a material agreement - could be debt or other obligation.

AI Summary

On September 16, 2024, Americas Car-Mart, Inc. entered into a material definitive agreement related to a direct financial obligation. The company also reported other events and filed financial statements and exhibits.

Why It Matters

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

Risk Assessment

Risk Level: medium — Material definitive agreements and new financial obligations can introduce financial risks and operational changes for a company.

Key Players & Entities

• AMERICAS CAR-MART, INC. (company) — Registrant
• September 16, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share CRMT NASDAQ Global Select M
• $20 million — s under the revolving line of credit by $20 million to $320 million. Under the Amendment, t
• $320 million — olving line of credit by $20 million to $320 million. Under the Amendment, the Company will
• $300 m — er the line of credit equals or exceeds $300 million, the Company will be required to
• $50 million — d to maintain a minimum availability of $50 million. The Amendment provides that the Compan

Filing Documents

• f8k_091724.htm (8-K) — 33KB
• exh_109.htm (EX-10.9) — 95KB
• 0001171843-24-005243.txt ( ) — 318KB
• crmt-20240916_lab.xml (EX-101.LAB) — 33KB
• crmt-20240916_pre.xml (EX-101.PRE) — 22KB
• crmt-20240916.xsd (EX-101.SCH) — 3KB
• f8k_091724_htm.xml (XML) — 4KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On September 16, 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. 8 to the Third Amended and Restated Loan and Security Agreement (the "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, February 22, 2023, February 28, 2024, and July 12, 2024. Amendment No. 8 to the Agreement (the "Amendment") makes certain adjustments and modifications to the terms of the Agreement to, among other things, reduce the total permitted borrowings under the revolving line of credit by $20 million to $320 million. Under the Amendment, the Company will be required, after October 15, 2024, to maintain a minimum amount available to be drawn under the credit facilities, based on eligible finance receivables and inventory, of $20 million. If the outstanding principal balance under the line of credit equals or exceeds $300 million, the Company will be required to maintain a minimum availability of $50 million. The Amendment provides that the Company will use the net proceeds of any junior capital raise of $50 million or more to pay down the then outstanding principal balance of the line of credit and will pay a fee to the lenders of 0.10% of the total permitted borrowings under the line of credit if the Company has not completed such a capital raise by October 31, 2024. The Amendment also makes certain modifications to the fixed charge coverage ratio covenant under the Agreement and restricts the Company from making future repurchases of its common stock, along with the agreement

03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of

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.

01. Other Events

Item 8.01. Other Events. On September 16, 2024, the Company's principal operating subsidiary, ACM, and a special purpose subsidiary of the Company also entered into an amendment to the loan and security agreement for the Company's amortizing warehouse loan facility that amends the fixed charge coverage ratio covenant under that agreement consistent with Amendment No. 8 to the Company's revolving credit agreement and modifies certain other financial covenants under the warehouse agreement.

01. Financial Statements and Exhibits

Item 9.01. 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 Arkan

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: September 18, 2024 /s/ Vickie D. Judy Vickie D. Judy Chief Financial Officer (Principal Financial Officer)

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View this 8-K filing on SEC EDGAR