Business Context and Reporting Period
Company: CAVCO INDUSTRIES, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: November 12, 2024
Event: Entry into a Material Definitive Agreement (Amended and Restated Credit Agreement).
Key Financial Metrics and Debt Structure
This filing details a new credit facility rather than reporting operational financial results (revenue, profit, or cash flow) for a specific period.
- Facility Size: $75 million revolving credit facility.
- Sub-facility: Includes a $10 million letter of credit sub-facility.
- Maturity Date: November 12, 2029.
- Outstanding Borrowings: $0 as of the report date.
- Interest Rate Structure: Term SOFR + 0.10% credit spread adjustment + applicable rate (1.25% to 1.50%) OR Base Rate + applicable rate (0.25% to 0.50%).
- Commitment Fee: 0.20% per annum on the unused portion.
Material Changes Versus Prior Period
The Company amended and restated its previous credit agreement entered into on November 22, 2022. The new agreement extends the maturity date to 2029 and establishes updated pricing grids and financial covenants.
Financial Covenants, Risks, and Management Commentary
The Credit Agreement imposes specific financial covenants and customary restrictions:
- Consolidated Total Leverage Ratio: Must not exceed 3.25 to 1.00 as of the end of any fiscal quarter.
- Consolidated EBITDA Requirement: Must maintain at least $75 million for any period of four fiscal quarters.
- Covenants: Includes restrictions on incurring additional indebtedness, paying dividends, redeeming stock, making acquisitions, and creating liens.
- Expansion Option: The Company may request term loans or increases in commitments up to an additional $75 million, subject to lender availability.
Key Facts for Investor Verification
- Verify the Company's current Consolidated Total Leverage Ratio to ensure compliance with the 3.25:1.00 covenant.
- Confirm the Company's trailing twelve-month Consolidated EBITDA meets the $75 million minimum threshold.
- Review the full text of Exhibit 10.1 for specific definitions of "Consolidated Total Leverage Ratio" and "Consolidated EBITDA" as these may differ from GAAP measures.
- Note that while the facility is available, no funds have been drawn as of November 12, 2024.