Business Context and Reporting Period
Origin Bancorp, Inc., a Louisiana corporation, filed this Form 8-K on October 5, 2018, to report the entry into a material definitive agreement. The company is headquartered in Ruston, Louisiana.
Key Financial Metrics and Agreement Details
- Facility Type: Revolving credit facility.
- Maximum Amount: $50 million.
- Interest Rate: Variable rate equal to one-month LIBOR plus 3.25%.
- Interest Calculation: Actual day/360-day year basis.
- Maturity Date: October 5, 2021.
- Outstanding Balance: $0 as of the filing date.
- Collateral: Pledge of all issued and outstanding shares of the Company's wholly owned subsidiary, Origin Bank.
Material Changes and Covenants
The Company entered into a Loan Agreement, Revolving Promissory Note, and Pledge and Security Agreement with NexBank SSB. The agreements include customary covenants requiring the Company and Origin Bank to maintain specific financial and capital ratios. Events of default include payment defaults, breaches of representations, and bankruptcy proceedings, which could trigger acceleration of the debt and sale of the collateral.
Guidance, Outlook, and Risks
The filing does not provide specific financial guidance or management commentary regarding future performance. The primary risk disclosed is the potential acceleration of the $50 million obligation and the loss of control over the subsidiary's shares if the Company fails to meet the financial covenants or defaults on the agreement.
Investor Verification Checklist
- Verify the specific financial and capital ratio covenants required by the Loan Agreement.
- Confirm the current status of the Company's capital adequacy relative to the new covenants.
- Review the full text of Exhibits 10.1, 10.2, and 10.3 for detailed default provisions.
- Monitor future drawdowns on the $50 million facility, as none were outstanding at the time of filing.