Business Context and Reporting Period
Company: Coffee Holding Co., Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: February 13, 2012
Event Date: February 13, 2012
Context: The Company entered into a material definitive agreement regarding its financing arrangements with Sterling National Bank.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or total debt levels. The only financial metric disclosed relates to the cost of debt:
- Interest Rate: Reduced to the Wall Street Journal Prime rate (3.25%) plus 1% (Total: 4.25%).
- Effective Date of Rate Change: February 12, 2012.
Material Changes
The primary material change reported is the modification of the existing credit facility with Sterling National Bank:
- Term Extension: The financing agreement term was extended until February 17, 2014.
- Rate Reduction: The interest rate on the credit facility was lowered to Prime + 1%.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future operations, or specific risk factors beyond the terms of the new agreement. The reduction in interest rate and extension of the term are presented as positive developments for the Company's liquidity and cost structure.
Investor Verification Checklist
- Verify the total principal amount outstanding on the Sterling National Bank credit facility to assess the impact of the rate reduction.
- Review the full text of the financing agreement (Exhibit 99.1) for any new covenants or conditions attached to the term extension.
- Confirm the Company's current liquidity position to ensure the extended term aligns with operational cash flow needs.