Search the web
Welcome, Guest
[Sign Out, My Account]
EDGAR_Online

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
ALCS > SEC Filings for ALCS > Form 8-K on 6-Jun-2014All Recent SEC Filings

Show all filings for ALCO STORES INC

Form 8-K for ALCO STORES INC


6-Jun-2014

Entry into a Material Definitive Agreement, Creation of a Direct Financial Obliga


Item 1.01 Entry into a Material Definitive Agreement

On May 30, 2014, ALCO Stores, Inc. (the "Company") closed on an Amended and Restated Credit Agreement (the "Amended Credit Agreement") with Wells Fargo Bank, National Association ("Wells Fargo"). The Amended Credit Agreement amends and restates the Company's current Credit Agreement with Wells Fargo dated July 21, 2011, as amended (the "Previous Credit Agreement") and extends credit to the Company in an aggregate principal amount of up to $142.5 million. The Amended Credit Agreement is for an extended term through 2019 and provides access to additional availability of approximately $17.5 million. The additional availability will be collateralized by certain Company assets including, but not limited to, five Company owned properties and expanded access to inventory assets. As part of the negotiation of the Amended Credit Agreement, the Company pledges certain collateral to Wells Fargo under the terms of an Amended and Restated Security Agreement that was executed as part of the closing on the Amended Credit Agreement on May 30, 2014 (the "Amended Security Agreement"). As of the end of the Company's first fiscal 2014 quarter, the Company had $85,228,969 borrowed under the Previous Credit Agreement.

The amount advanced to the Company on any Base Rate Loan (as such term is defined in the Amended Credit Agreement) under the Amended Credit Agreement bears interest at the highest of (a) the rate of interest in effect for such day as publicly announced from time to time by Wells Fargo as its "prime rate"; (b) the Federal Funds Rate for such day, plus 0.50%; and (c) the Adjusted LIBO Rate (as such term is defined in the Amended Credit Agreement) as determined on such day, plus 1.0%. Amounts advanced with respect to any LIBO Borrowing for any Interest Period, (as those terms are defined in the Amended Credit Agreement), shall bear interest at an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of one percent (1%)) equal to (a) the LIBO rate for such Interest Period multiplied by (b) the Statutory Reserve Rate (as defined in the Amended Credit Agreement).

The amount advanced to the Company on any Real Estate Term Loan (as such term is defined in the Amended Credit Agreement) under the Amended Credit Agreement bears interests at a rate per annum rate equal to (a) the sum of (i) the greater of (A) the LIBO Rate (as such term is defined in the Amended Credit Agreement) and (B) one percent (1%) plus (ii) five percent (5%), or (b) if the LIBO Rate is not available at such time for any reason, the Alternative Real Estate Term Loan Interest Rate. The Alternative Real Estate Term Loan Interest Rate means, at any time, a rate per annum equal to the sum of (a) the greater of (i) the Base Rate in effect at such time and (ii) two percent (2%) plus (b) four percent (4%).

The amount advanced to the Company on any Term Loan (as such term is defined in the Amended Credit Agreement) under the Amended Credit Agreement bears interest at a rate per annum rate equal to (a) the sum of (i) the greater of (A) LIBO Rate and (B) one percent (1%) plus (ii) seven percent (7%), or (b) if the LIBO Rate is not available at such time for any reason, the Alternative Term Loan Interest Rate. The Alternative Term Loan Interest Rate means, at any time, a rate per annum equal to the sum of (a) the greater of (i) the Base Rate in effect at such time and (ii) two percent (2%) plus (b) six percent (6%).

The Amended Credit Agreement contains various restrictions that are applicable when outstanding borrowings reach certain thresholds, including limitations on additional indebtedness, prepayments, acquisition of assets, granting of liens, certain investments and payments of dividends.

A copy of the Amended Credit Agreement is attached hereto as Exhibit 99.1 as set forth below in Item 9.01 and incorporated herein by reference. A copy of the Amended Security Agreement is attached hereto as Exhibit 99.2 as set forth below in Item 9.01 and incorporated herein by reference. The foregoing description of each of the terms of the Amended Credit Agreement and Amended Security Agreement is qualified in its entirety by reference to the full text of the exhibits.



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 in Item 1.01 is incorporated herein by reference into this Item 2.03.



Item 7.01 Regulation FD Disclosure.

The information set forth in Item 1.01 is incorporated herein by reference into this Item 7.01.

On June 2, 2014, the Company issued a press release attached as Exhibit 99.3, incorporated into this Item 7.01 by reference, to announce that the Company has closed on the Amended Credit Agreement described above in Item 1.01.

Item 9.01. Exhibits.



(d) Exhibits



99.1     Amended Credit Agreement dated May 30, 2014.

99.2     Amended Security Agreement dated May 30, 2014.

99.3     Press Release dated June 2, 2014, furnished solely for the purpose of
         incorporation by reference into Items 7.01 and 9.01.

  Add ALCS to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for ALCS - All Recent SEC Filings
Copyright © 2014 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.