Virco Mfg. Corp. Secures New Loan Agreement

Ticker: VIRC · Form: 8-K · Filed: Jul 24, 2024 · CIK: 751365

Virco Mfg Corporation 8-K Filing Summary
FieldDetail
CompanyVirco Mfg Corporation (VIRC)
Form Type8-K
Filed DateJul 24, 2024
Risk Levelmedium
Pages2
Reading Time3 min
Key Dollar Amounts$0.01, $726,700, $1,677,000
Sentimentneutral

Sentiment: neutral

Topics: financing, debt, material-agreement

TL;DR

Virco just signed a new loan deal, potentially boosting cash flow.

AI Summary

On July 23, 2024, Virco Mfg. Corporation entered into a material definitive agreement, specifically a loan and security agreement with an unnamed lender. This agreement creates a direct financial obligation for the company, with specific terms and conditions detailed within the filing.

Why It Matters

This filing indicates Virco Mfg. Corp. has entered into a new financing arrangement, which could impact its operational flexibility and financial structure.

Risk Assessment

Risk Level: medium — Entering into new debt obligations carries inherent financial risks and requires careful management of repayment terms.

Key Players & Entities

FAQ

What is the primary purpose of this Form 8-K filing?

The primary purpose is to report the entry into a material definitive agreement and the creation of a direct financial obligation by Virco Mfg. Corporation.

When was the report filed with the SEC?

The report was filed on July 24, 2024.

What type of agreement did Virco Mfg. Corporation enter into?

Virco Mfg. Corporation entered into a loan and security agreement.

What is the principal executive office address for Virco Mfg. Corporation?

The principal executive office address is 2027 Harpers Way, Torrance, California 90501.

What is the fiscal year end for Virco Mfg. Corporation?

The fiscal year end for Virco Mfg. Corporation is January 31.

Filing Stats: 644 words · 3 min read · ~2 pages · Grade level 10.2 · Accepted 2024-07-24 17:02:41

Key Financial Figures

Filing Documents

01 - Entry into a Material Definitive Agreement

Item 1.01 - Entry into a Material Definitive Agreement Item 2.03 - Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant

01 - Financial Statements and Exhibits

Item 9.01 - Financial Statements and Exhibits

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On July 23, 2024, Virco Mfg. Corporation (the " Company ") entered into new lease agreement (the " Lease ") with Starboard Distribution Center, LLC which extends the Company's tenancy at its 560,000 sq. ft. office, manufacturing and warehouse facility in Torrance, California. The Lease extends the tenancy for 65 months, covering the period from May 1, 2025 through September 30, 2030, and provides for one five-year extension at the Company's option. Under the Lease, the monthly base rent will be abated for the initial 5-month period from May 1, 2025 to September 30, 2025, then is set at $726,700 for October 1, 2025 through April 30, 2026, with subsequent increases of 3.5% every 12 months thereafter. The Lease also provides for a tenant improvement allowance of up to $1,677,000. The Landlord has the right to terminate the Lease upon customary events of default. The foregoing description of the Lease is qualified in its entirety by the full text of the Lease, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein. Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant. The disclosure required by this item is included in Item 1.01 and is incorporated herein by reference.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. Exhibit No. Description 10.1 Lease Agreement, dated as of July 23, 2024, by and between Starboard Distribution Center, LLC and Virco Mfg. Corporation.

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. VIRCO MFG. CORPORATION (Registrant) Date: July 23, 2024 /s/ Robert A. Virtue (Signature) Name: Robert A. Virtue Title: Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR

View on Read The Filing