Great American unit amends, extends credit terms with Wells Fargo

By Susanna Moon

Chicago, July 19 - Great American Group WF, LLC, a subsidiary of Great American Group, Inc., amended its credit agreement with Wells Fargo Bank, NA on Monday, extending the maturity for five years until July 15, 2018, according to an 8-K filing with the Securities and Exchange Commission.

The credit terms amended and restated the agreement Dec. 8, 2010 to

• Remove GA Asset Advisors Ltd., the company's subsidiary in the United Kingdom, as a party thereto and remove the related concept of borrowings for transactions within the United Kingdom, with respect to which the company expects entering into a separate credit agreement with an affiliate of Wells Fargo, which is expected to be cross collateralized and integrated in certain respects with the restated credit agreement;

• Confirm that the maximum uncommitted revolving loan amount available remains at $100 million less the aggregate principal amount borrowed under the U.K. credit agreement;

• Adjust the fees payable on letters of credit issued thereunder to (a) 1.75% per year for any letter of credit that is fully cash collateralized and (b) 3% per year for all other letters of credit, in each case multiplied by the maximum amount available from time to time to be drawn under the letter of credit; and

• Provide the company with further flexibility to obtain a permitted separate working capital line and the option to cause letters of credit issued in connection the restated credit agreement to be issued from the separate working capital line rather than fully collateralized by cash of the company.

Interest on the loans remains Libor plus 225 basis points to 325 bps, based on the inventory advance rate.

Great American is a Woodland Hills, Calif.-based provider of asset disposition and valuation and appraisal services to a range of retail, wholesale and industrial customers, as well as lenders, capital providers, private equity investors and professional service firms.

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