Loan & DebtMay 26, 2026, 04:38 PM
World Acceptance Corp Modifies Fixed Charge Ratio Covenant
AI Summary
World Acceptance Corporation entered into a Consent and Limited Modification to its Fixed Charge Coverage Ratio covenant with Bank of Montreal and other lenders. The required ratio will be temporarily lowered for three fiscal quarters: 2.20:1.0 for March 31, 2026; 2.10:1.0 for June 30, 2026; and 2.15:1.0 for September 30, 2026. The covenant will revert to the original 2.25:1.0 starting December 31, 2026, providing the company with short-term financial flexibility.
Key Highlights
- World Acceptance Corp modified its Fixed Charge Coverage Ratio covenant.
- Ratio temporarily set to 2.20:1.0 for the fiscal quarter ending March 31, 2026.
- Ratio temporarily set to 2.10:1.0 for the fiscal quarter ending June 30, 2026.
- Ratio temporarily set to 2.15:1.0 for the fiscal quarter ending September 30, 2026.
- Original ratio of 2.25:1.0 resumes from the fiscal quarter ending December 31, 2026.
- Modification requires a consent fee of 0.03% of the aggregate lender commitments.
Price Impact
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