News Column

ZUMIEZ INC FILES (8-K) Disclosing Entry into a Material Definitive Agreement, Termination of a Material Definitive Agreement, Financial Statements and Exhibits

July 11, 2014



Item 1.01. Entry Into a Material Definitive Agreement

On July 9, 2014, Zumiez Inc. (the "Company"), through a wholly owned subsidiary, entered into a secured credit agreement (the "Credit Agreement") with Wells Fargo Bank, N.A. ("Wells Fargo").

The Credit Agreement provides the Company with a senior revolving credit facility through September 1, 2016 of up to $25.0 million, which, pursuant to an accordion feature, may be increased to $35.0 million at the Company's discretion (the "New Facility"). The New Facility replaces the Company's $25.0 million secured revolving credit facility with Wells Fargo, which was scheduled to terminate on September 1, 2014 (the "Prior Facility"). See Item 1.02. "Termination of a Material Definitive Agreement" below.

Amounts outstanding under the New Facility will bear interest either at a fluctuating rate per annum equal to 1% above the Daily Three Month LIBOR Rate (as defined in the Revolving Line of Credit Note) or at a fixed rate of 1% above LIBOR in effect on the first day of an applicable fixed rate term. The Company's obligations under the New Facility are secured by a first priority lien in the Company's accounts receivable, general intangibles, inventory and equipment. The Company must also provide financial information and statements to Wells Fargo. The New Facility contains financial covenants that require the Company to meet a certain quick ratio at the end of each fiscal quarter and to meet a net income after taxes threshold on a trailing four-quarter basis. The New Facility also contains certain negative covenants that generally limit the Company's ability to, among other things, incur additional indebtedness or enter into certain transactions. The material terms and conditions of the New Facility are substantially similar to the material terms and conditions in the Prior Facility.

A copy of the Credit Agreement along with the related Revolving Line of Credit Note is attached hereto as Exhibit 10.25. The preceding summary of the Credit Agreement and the related Revolving Line of Credit Note does not purport to be complete and is qualified in its entirety by reference to the Credit Agreement and the related Revolving Line of Credit Note.

Item 1.02. Termination of a Material Definitive Agreement

The disclosure provided in Item 1.01 of this Form 8-K is hereby incorporated by reference into this Item 1.02. On July 9, 2014, the Prior Facility with Wells Fargo was terminated. The Prior Facility was scheduled to expire on September 1, 2014.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits 10.25. Credit Agreement, including Revolving Line of Credit Note, with Wells Fargo Bank, N.A. dated July 9, 2014



--------------------------------------------------------------------------------


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Edgar Glimpses


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters