Weyco Group Extends $40M Credit Line to 2027
The credit agreement secures the facility with Weyco's general business assets and includes a minimum tangible net worth covenant.
Rhea-AI Filing Summary
WEYCO Group, Inc. amended its revolving credit facility with Associated Bank, National Association, extending the facility’s maturity to September 23, 2027. The agreement has a maximum available borrowing limit of $40.0 million; outstanding amounts bear interest at one-month term SOFR plus 110 basis points. Weyco states that the amendment makes no other changes to the agreement.
Positive
- None.
Negative
- None.
Filing Explained
The filing states that Weyco’s revolving facility is secured by a security interest in its general business assets and includes covenants, including a minimum tangible-net-worth financial covenant.
8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Maximum available borrowing limit: $40.0 million
Interest rate: One-month term SOFR plus 110 basis points
Facility maturity: September 23, 2027
3 metrics
Maximum available borrowing limit
$40.0 million
Amended revolving credit facility
Interest rate
One-month term SOFR plus 110 basis points
Amounts outstanding under the amended agreement
Facility maturity
September 23, 2027
Maturity of the revolving credit facility
Key Terms
revolving credit facility, secured overnight financing rate, security interest, minimum tangible net worth financial covenant, +1 more
5 terms
revolving credit facility financial
"amending its revolving credit facility"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
secured overnight financing rate financial
"one-month term secured overnight financing rate (“SOFR”)"
A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.
security interest financial
"secured by a security interest in Company’s general business assets"
A security interest is a legal claim a lender or creditor holds on a borrower's asset as collateral to secure repayment; if the borrower fails to pay, the creditor can seize or sell that asset to recover money owed. Think of it like a pawnshop tag on an item that gives the pawnbroker the right to sell it if the loan isn't repaid. For investors, security interests matter because they change how safely lenders and bondholders can recover funds and affect the hierarchy of claims if a company faces financial trouble.
minimum tangible net worth financial covenant financial
"including a minimum tangible net worth financial covenant"
basis points financial
"plus 110 basis points"
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When does WEYS's revolving credit facility mature?
WEYCO Group's revolving credit facility matures on September 23, 2027.
What are the borrowing limit and interest rate under WEYS's amended credit facility?
The amended agreement has a maximum available borrowing limit of $40.0 million, and amounts outstanding bear interest at one-month term SOFR plus 110 basis points.
What collateral and financial covenant apply to WEYS's credit facility?
The facility is secured by a security interest in WEYCO Group's general business assets and includes customary representations, warranties, and covenants, including a minimum tangible net worth financial covenant.
AI-generated analysis. How Rhea-AI works. Not financial advice.
