Liberty Tax decreases total revolving commitments to $170 million

By Sarah Lizee

Olympia, Wash., July 24 – Liberty Tax, Inc. and its subsidiaries entered into a sixth amendment to their revolving credit and term loan agreement on July 18 with SunTrust Bank as administrative agent to reduce the total revolving commitment amount to $170 million from $193.75 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also provides for the consent of SunTrust to the sale of the company’s class A and class B common stock owned by John T. Hewitt, chairman of the company’s board of directors, provided that the sale will be completed on or before July 31, that Hewitt will not acquire ownership or control of securities possessing the power to appoint or elect a majority of the members of the company’s board of directors, and that Hewitt will resign his position as chairman and as a member of the board.

Additionally, the amendment provides that if any delisting of the company’s common stock from the Nasdaq has occurred, the total principal amount of all revolving loans would not be permitted to exceed $50 million until the company has satisfied all requirements set forth in the credit agreement with respect to the company’s fiscal year ended April 30.

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