Subsequent Events (Details) - USD ($) $ in Thousands |
9 Months Ended | |||
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Nov. 30, 2022 |
Nov. 21, 2022 |
Jul. 21, 2022 |
Oct. 31, 2022 |
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Subsequent Event [Line Items] | ||||
Original Net Proceeds | $ 402,800 | $ 778,018 | ||
Original principal amount | $ 785,500 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Covenant, Minimum Liquidity Amount | $ 125,000 | |||
Debt Instrument, Covenant, Minimum Availability Requirement, Percentage | 25.00% | |||
Debt Instrument, Covenant, Minimum Availability Requirement, Amount | $ 75,000 | |||
Debt Instrument, Covenant, Anti-Cash Covenant Threshold | 100,000 | |||
Debt Instrument, Covenant, Minimum Liquidity Amount after November 1, 2023 | 112,500 | |||
Debt Instrument, Covenant, Maximum Amount Outstanding | $ 325,000 | |||
Subsequent Events | 10. Subsequent Events Revolving Credit Facility Amendment. On November 21, 2022, Conn’s, Inc. (the “Company”) entered into an Amendment No. 1 (the “Amendment”) to the Fifth Amended and Restated Loan and Security Agreement, dated as of March 29, 2021, by and among the Company, as parent and guarantor, Conn Appliances, Inc., Conn Credit I, LP and Conn Credit Corporation, Inc., as borrowers, certain banks and financial institutions named therein, as lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders (the “Agreement”). The Amendment, among other things, (a) replaces the interest rate benchmark under the Agreement from LIBOR to Term SOFR; (b) provides for a covenant relief period, which removes testing of the interest coverage covenant for the fiscal quarter ended October 31, 2022 and each fiscal quarter ended thereafter during the Covenant Relief Period (but before April 30, 2024), commencing on November 21, 2022 through the earlier of (i) the date on which the Company delivers financial statements and a compliance certificate for the fiscal quarter ending April 30, 2024 (demonstrating compliance with the then applicable interest coverage and leverage covenants) and (ii) the date that is 10 business days after the Administrative Agent receives (1) written notice electing to terminate the covenant relief period (such notice not to be delivered prior to November 1, 2023) and (2) projections demonstrating future compliance with the interest coverage and leverage covenants for the fiscal quarters ending on or prior to January 31, 2025 (the “Covenant Relief Period”), (which projections will be prepared by Borrower Agent in good faith, it being recognized that projections are subject to uncertainties); (c) adds a minimum liquidity covenant, which requires at all times during the Covenant Relief Period that the Company and certain of its subsidiaries maintain minimum liquidity of (i) $125.0 million through October 31, 2023 (ii) on and after November 1, 2023, $112.5 million provided that from and after such date until the end of the Covenant Relief Period, the revolving credit facility amount outstanding is limited to $325.0 million; (d) adds an anti-cash hoarding covenant, which requires at all times during the Covenant Relief Period mandatory prepayments of the revolver loans with the amount of any cash on the Company’s balance sheet in excess of $100.0 million to the extent any revolving loans are then outstanding; (e) adds a minimum availability covenant, which requires at all times during the Covenant Relief Period availability under the revolver of no less than the greater of (i) 25% of the borrowing base and (ii) $75.0 million; (f) provides for increased reporting requirements during the Covenant Relief Period and (g) restricts the ability to make permitted acquisitions and certain non-ordinary course investments, restricted payments and restricted debt payments during the Covenant Relief Period. The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by the full text of the Amendment, which is filed as Exhibit 10.2 to this quarterly report on Form 10-Q. Sale of Asset Backed Notes. On November 30, 2022, the Company completed the sale of $63.1 million in aggregate principal amount of zero coupon Asset Backed Fixed Rate Notes, Class C, Series 2022-A (the "Class C Notes") which were previously issued and held by the Company. The asset-backed notes are secured by the transferred customer accounts receivables and restricted cash held by a consolidated VIE, which resulted in net proceeds to us of $43.7 million, net of debt issuance costs. Net proceeds from the sale were used for general corporate purposes.
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2022-A VIE Class C Notes [Member] | ||||
Subsequent Event [Line Items] | ||||
Original principal amount | $ 63,100 | |||
Contractual Interest Rate | 0.00% | |||
2022-A VIE Class C Notes [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Original Net Proceeds | $ 43,700 | |||
Original principal amount | $ 63,100 | |||
Contractual Interest Rate | 0.00% |