Nicholas Financial lowers facility to $200 million, extends to 2019

By Sarah Lizee

Olympia, Wash., April 4 – Nicholas Financial, Inc. amended its existing credit facility on March 30 to extend the maturity date by one year to March 31, 2019 and reduce the maximum amount the company can borrow to $200 million from $250 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also adjusts the calculation of available funds under the credit facility and provides for monthly rather than quarterly calculation of the interest coverage ratio.

The amendment requires a minimum interest coverage ratio as of April 30 and May 31 of 0.7 times, and as of June 30 and after that of 1 time.

Also, an additional event of default was added for any stay, injunction or other non-monetary sanction imposed by a governmental authority that may have a material adverse effect on the company.

Interest remains at Libor plus 400 basis points.

Bank of America, NA is the administrative agent with Wells Fargo Bank, NA, First Tennessee Bank, NA and BMO Harris Bank, NA as participating banks.

Nicholas Financial is a consumer and auto loan company based in Clearwater, Fla.

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