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EX-10.1 - EXHIBIT 10.1 - HASTINGS ENTERTAINMENT INC | c20387exv10w1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 21, 2011
HASTINGS ENTERTAINMENT, INC.
(Exact name of registrant as specified in its charter)
Texas | 000-24381 | 75-1386375 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
3601 Plains Blvd. Amarillo, Texas |
79102 |
|
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: (806) 351-2300
None
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
HASTINGS ENTERTAINMENT, INC.
Section 1 Registrants Business and Operations
Item 1.01 | Entry into a Material Definitive Agreement. |
On July 21, 2011, Hastings Entertainment, Inc. (the Company) entered into an amendment (the
First Amendment) to the Amended and Restated Loan and Security Agreement with Bank of America,
N.A., acting in its capacity as agent for various lenders identified therein (the Agreement).
The First Amendment increases the Revolving Credit Ceiling (as defined in the Agreement) from
$100,000,000 to $115,000,000 and also increases the Companys borrowing base. Prior to the First
Amendment, the Companys borrowing base was 85% of the liquidation value of eligible inventory plus
85% of eligible credit card receivables minus any reserves of the Company. The First Amendment
increases the borrowing base to either (a) at all times during the year, other than those stated
in (b), 90% of the liquidation value of eligible inventory or (b) from September 1st
through and including December 27th of each year, 92.5% of the liquidation value of
eligible inventory, plus 85% of eligible credit card receivables, minus any reserves of the
Company.
Prior to the First Amendment, the Base Margin (as defined in the Agreement) was between 1.0% and
1.75%, and the Libor Margin (as defined in the Agreement) was between 2.0% and 2.75%, depending on
the level of average availability under the facility. Under the First Amendment, the range of the
Base Margin is between 1.0% and 1.50% and the range of the Libor Margin is between 2.0% and 2.50%,
depending on the level of availability under the facility. In both cases, the greater the
availability, the lower the applicable Margin.
The First Amendment also allows the payment of dividends, upon the satisfaction of certain
conditions. The payment of dividends was previously prohibited under the Agreement. The First
Amendment includes a change in financial performance covenant that requires the Company, at all
times, to maintain availability that is greater than or equal to 10% of the lesser of (a) the
Borrowing Base (as defined in the Agreement), and (b) the Revolving Credit Ceiling (as defined in
the Agreement), but no less than $10 million, at all times.
The foregoing description of the First Amendment does not purport to be complete and is subject to,
and qualified in its entirety by, the full text of the Amended Agreement, which is attached as
Exhibit 10.1 hereto and is incorporated herein by reference.
Item 9.01. | Financial Statements and Exhibits |
10.1 | First Amendment to Amended and Restated Loan and Security Agreement, dated as of July 21,
2011, by and between Hastings Entertainment, Inc. and Bank of America, N.A., acting in its
capacity as agent for various lenders identified therein. |
HASTINGS ENTERTAINMENT, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 21, 2011 | Hastings Entertainment, Inc. (Registrant) |
|||
By: | /s/ Dan Crow | |||
Dan Crow | ||||
Vice President,
Chief Financial Officer (Principal Financial and Accounting Officer) |
HASTINGS ENTERTAINMENT, INC.
INDEX TO EXHIBITS
Exhibit No. | Description | |||
10.1 | First Amendment to Amended and Restated Loan and Security
Agreement, dated as of July 21, 2011, by and between Hastings
Entertainment, Inc. and Bank of America, N.A., acting in its
capacity as agent for various lenders identified therein. |