Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 134

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 8
Chunk 134
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 be equal to or greater than $5.25 million for a period of 60 consecutive days and no event of default is continuing.  Affirmative and Restrictive Covenants. The ABL Credit Agreement governing the ABL Facility contains customary representations and warranties, affirmative and negative covenants (subject, in each case, to exceptions and qualifications), and events of defaults, including covenants that limit the company’s ability to, among other things:  •incur additional indebtedness; •make investments; •pay dividends and make other restricted payments; •sell certain assets; •create liens; •consolidate, merge, sell or otherwise dispose of all or substantially all of the company’s assets; and•enter into transactions with affiliates. OverallInterest is charged at a rate (applicable interest rate of 5.80%, 6.81%, and 6.81% as of January 26, 2025, January 28, 2024, and April 28, 2024, respectively) calculated using the Applicable Margin over SOFR based on the borrower's excess availability under the ABL Facility, as defined in the ABL Credit Agreement.There were $925,000, $535,000, and $535,000 of outstanding letters of credit provided by the ABL Credit Agreement as of  January 26, 2025, January 28, 2024, and April 28, 2024, respectively. As of January 26, 2025, the borrower had $75,000 remaining for the issuance of additional letters of credit under the ABL Credit Agreement. There were no borrowings outstanding under the ABL Credit Agreement as of January 26, 2025, January 28, 2024, and April 28, 2024, respectively.  As of January 26, 2025, our available borrowings calculated under the provisions of the ABL Credit Agreement totaled $23.2 million of which we borrowed $6.0 million from January 27, 2025, through March 7, 2025.Denominated in Chinese Yuan Renminbi (“RMB”)Agricultural Bank of China - RMB Unsecured Credit AgreementEffective March 20, 2024, we entered into an unsecured credit agreement denominated in RMB that provides for a line of credit up to 29.0 million RMB ($4.0 million USD as of January 26, 2025