Business Context and Reporting Period
Company: Bassett Furniture Industries, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: October 31, 2007
Event: Amendment to existing credit facility with Branch Banking and Trust Company (BB&T).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It focuses exclusively on debt facility terms.
- Credit Facility Limit: Up to $40 million.
- Interest Rate: Variable (LIBOR plus 1.5%).
- Collateral: Substantially all of the Company's receivables and inventories.
- Liquidity Covenant: Requirement to maintain at least $15 million in marketable securities with selected institutions.
Material Changes
On October 31, 2007, the Company amended its credit agreement with BB&T. The primary changes include:
- Extension: The agreement term was extended through November 30, 2009.
- Covenants: Addition and amendment of certain covenants, specifically the new requirement to hold $15 million in marketable securities.
Guidance, Outlook, and Risks
The filing contains no management guidance, outlook, or discussion of general business risks. The only noted contingency is the obligation to comply with the new liquidity covenant regarding marketable securities. The filing states that the text does not constitute a complete summary of the credit facility terms, which will be filed as an exhibit to a later filing.
Investor Verification Checklist
- Verify the full text of the amended credit agreement exhibit to understand all amended covenants.
- Confirm the Company's current balance of marketable securities to ensure compliance with the new $15 million minimum requirement.
- Monitor future filings for any additional off-balance sheet arrangements or debt modifications.