Item 1.01. Entry into a Material Definitive Agreement
On December 19, 2012, FFE Transportation Services, Inc., Lisa Motor
Lines, Inc., Conwell Corporation, and FFE Logistics, Inc. (the
"Borrowers"), and Frozen Food Express Industries, Inc. (the
"Company") and certain of its subsidiaries (the "Guarantors"),
executed the Second Amendment (the "Amendment") to a certain Loan and
Security Agreement, dated March 28, 2011 (the "Credit Agreement"), by
and among the Borrower, the Guarantors and Bank of America, N.A., as
Agent Bank for the lenders under the Credit Agreement.
Under the original Credit Agreement, the Company was required to meet
a minimum fixed charge coverage ratio if the borrowing availability
fell below $10 million at any point in time. This Amendment reduces
the availability threshold amount to $7 million and adds a
stipulation that the Company's borrowing availability must be below
the threshold for a period of three consecutive days or is less than
$6.5 million for any day before the Company would be required to meet
the minimum fixed charge coverage ratio covenant. On January 1,
2014, the threshold amount will return to $10 million. The pricing
structure for the interest on borrowed funds has been modified, which
will add 25 basis points to the Company's current borrowing rate. As
amended by this Amendment and the First Amendment dated March 29,
2012, the Credit Agreement remains in full force and effect.
Item 7.01. Regulation FD Disclosure
On December 19, 2012, Frozen Food Express Industries, Inc. issued a
press release announcing the Company has amended its credit agreement
with Bank of America. A copy of the press release is furnished, but
not filed, as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements of business acquired.
Not applicable.
(b) Pro-forma financial information.
Not applicable.
(c) Shell company transactions.
Not applicable.
(d) Exhibits
99.1 Press Release dated December 19, 2012, Frozen Food Express
Industries, Inc. announcing the Company has amended its credit
agreement with Bank of America. A copy of the press release
is furnished, but not filed, as Exhibit 99.1 to this Current
Report on Form 8-K.