Business Context and Reporting Period
Company: Coffee Holding Co., Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: June 16, 2008
Event: Entry into a Material Definitive Agreement.
Key Financial Metrics
This filing does not report specific revenue, profit, cash flow, margin, debt, or liquidity figures. The document focuses exclusively on the amendment of financial covenants within an existing financing agreement.
Material Changes
On June 16, 2008, the Company entered into a Letter Agreement with Merrill Lynch Commercial Finance Corp. (MLCFC) to amend its financing agreement. The amendment modifies the measurement periods for two key covenants:
- Fixed Charge Coverage Ratio: Measurement periods are adjusted to a three-month basis (ending July 31, 2008), six-month basis (ending October 31, 2008), nine-month basis (ending January 31, 2009), and twelve-month basis (ending April 30, 2009). Thereafter, the covenant reverts to a trailing twelve-month basis for each quarterly period.
- Total Debt to EBITDA Ratio: This covenant will be measured on an annualized basis each quarter until the twelve months ended April 30, 2009.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or discussion of risks beyond the specific covenant amendments. No unusual items or contingencies are disclosed in this report.
Investor Verification Checklist
- Verify the full text of the Letter Agreement (Exhibit 10.20) to understand any additional terms not summarized in the 8-K.
- Confirm the Company's current compliance status with the amended Fixed Charge Coverage and Total Debt to EBITDA covenants.
- Review subsequent filings to determine if the covenants reverted to the trailing twelve-month basis as scheduled after April 30, 2009.