World Acceptance amends revolving credit agreement via Wells Fargo

By Tali Rackner

Norfolk, Va., March 19 - World Acceptance Corp. entered into a fifth amendment to the amended and restated revolving credit agreement on Monday with Wells Fargo Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The amendment adjusts the revolver as follows:

• Changes the "excess availability percentage" that the company must maintain to qualify for exception from a restricted payments covenant to allow the company to make stock repurchases to 10% from 15% for all applicable periods;

• Lowers the minimum net worth test for purposes of the consolidated net worth covenant to $265 million;

• Increases the amount of permitted total debt to consolidated adjusted net worth to 325% from 300%;

• No longer requires the deduction of property held for less than 90 days, minority interests, direct loan origination costs, restricted investments and all unrestricted subsidiaries from net book value to determine consolidated adjusted net worth; and

• Makes other required amendments to allow for the issuance of letters of credit.

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

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