World Acceptance extends revolving credit facility, cuts commitments

By Toni Weeks

San Luis Obispo, Calif., June 24 – World Acceptance Corp. entered into a ninth amendment on June 23 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 by one year through June 15, 2017 and reduces the aggregate commitments to $600 million from $630 million. It also provides for future reductions to $500 million on March 31, 2016 and to $400 million on March 31, 2017.

In addition, the amendment increases the applicable margin on borrowings to 400 basis points from 300 bps, in each case, in excess of one-month Libor. The commitment fee payable on the average daily unused portion of the commitments was fixed at 50 bps.

The amendment also reduces the maximum ratio of total debt to consolidated adjusted net worth to 2.75 times from 3.25 times.

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

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