Loan & DebtJun 25, 2026, 05:22 PM
America's Car-Mart Secures Lender Waiver for Defaults; Pays $18M Fee
AI Summary
America's Car-Mart entered into an amendment and limited waiver to its Credit and Guaranty Agreement, securing a waiver from lenders for several existing and anticipated defaults related to financial and reporting covenants. This waiver, effective until at least September 7, 2026, is contingent on the company meeting new milestones and revised financial covenants, including maintaining specific liquidity and Collateral Coverage Ratios. The company will pay up to $18.0 million in fees for this amendment, and in related corporate governance changes, Julia K. Davis resigned from the board, while Gilbert Nathan and Michael J. Wartell were appointed as independent directors.
Key Highlights
- Lenders waived multiple existing and anticipated defaults under the Credit and Guaranty Agreement.
- Waiver covers failures in minimum liquidity, Collateral Coverage Ratio, and audit report delivery.
- The waiver is effective until the Specified Period Termination Date, with a Scheduled Termination Date of September 7, 2026.
- New financial covenants include minimum liquidity of $7.0 million weekly and $5.0 million at other times.
- Minimum Collateral Coverage Ratio set at 1.25:1.00 by June 30, 2026, and 1.20:1.00 thereafter.
- Company agreed to pay aggregate fees up to $18.0 million to the Agent and Lenders.
- Julia K. Davis resigned as a director, effective immediately.
- Gilbert Nathan and Michael J. Wartell were appointed as independent directors to the Board.
Price Impact
More from CRMT