The ABL Advisor Deal Tables
SELECTED TRANSACTION DETAILS
Bank of America Agents Conn’s $810MM Amended ABL Facility
Tuesday, November 3, 2015
Lenders/Participants
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Bank of America [Administrative Agent]
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Structure
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Amended, Restated ABL Revolver
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Amount
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$810.000
Million
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Borrower(s)
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Conn’s, Inc.
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Description
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Company amended and restated its asset-based revolving credit facility that, among other things:
Provides total commitments of $810 million; an extension of the maturity date from November 25, 2017 to October 30, 2018; a modification of the method by which the applicable margin is calculated to be based on quarterly average net availability under the borrowing base, with the applicable margin ranging from 2.50% to 3.00% for LIBOR loans and from 1.50% to 2.00% for base rate loans; an increase in the maximum total leverage ratio covenant (ratio of total liabilities less the sum of qualified cash and ABS qualified cash to tangible net worth) from 2.0x to 4.0x; the addition of a new maximum “ABS excluded” leverage ratio covenant (ratio of total liabilities (excluding liabilities under the Company’s existing securitization transaction and other permitted securitization transactions) less qualified cash to tangible net worth) of 2.0x; the replacement of the fixed charge coverage ratio covenant with a minimum interest coverage ratio covenant of 2.0x; a reduction in the maximum accounts receivable advance rate from 80% to 75%; the inclusion of a fourth quarter seasonal step-down in the cash recovery covenant from 4.5% to 4.25%; an increase the maximum inventory component of the borrowing base from $100 million to $175 million; modifications of the conditions for repurchases of the Company’s common stock, including changes in the liquidity test and the elimination of the fixed charge coverage ratio test; the inclusion of a new liquidity test for repurchases and redemptions of the Company’s debt; andmodifications of the ability of the Company to effect future securitizations of its customer receivables portfolio, including removing the consent rights of the lenders and establishing set criteria for permitted securitizations.
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Industry
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Retail
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Related Tags |
Bank of America
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ABL Advisor
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2024
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