World Acceptance extends revolving credit facility, cuts commitments

By Marisa Wong

Madison, Wis., Nov. 20 – World Acceptance Corp. entered into a sixth amendment on Nov. 18 to its amended and restated revolving credit agreement dated Sept. 17, 2010 with Wells Fargo Bank, NA as administrative agent and collateral agent.

The amendment extends the term of the credit agreement through June 15, 2016 and reduces the aggregate commitments to $630 million from $680 million on June 15, 2015, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also introduces a collateral performance indicator, which would reduce the advance rate multiplier in the borrowing base formula. The reduction is from a current fixed percentage of 85% to a sliding scale ranging from 84% down to 80%, to the extent the three-month average of 60-plus day contractual delinquencies at a month-end plus the net charge-offs for the eight-month period ending on that date divided by average net finance receivables during the eight-month period ending on that date exceeds various levels between 18% and a permitted maximum of 24%.

World Acceptance is a Greenville, S.C.-based small-loan consumer finance business.

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