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Educational Development Corporation Announces Third Amendment to the Existing Credit Agreement
Tulsa, Oklahoma--(Newsfile Corp. - August 16, 2023) - Educational Development Corporation (NASDAQ: EDUC) ("EDC") (http://www.edcpub.com) today announced the
About this update from Educational Development Corporation
[{"type":"text","content":"Tulsa, Oklahoma--(Newsfile Corp. - August 16, 2023) - Educational Development Corporation (NASDAQ: EDUC) (\"EDC\") (http://www.edcpub.com) today announced the execution of the Third Amendment to the Existing Credit Agreement.\nCraig White, CEO of Educational Development Corporation, announced that the Company has executed the Third Amendment to the Existing Credit Agreement (\"Amendment\") with BOKF, NA (the \"Lender\"), effective August 9, 2023. This amendment:\n\n\nExtends the Revolving Loan Maturity Date to January 31, 2024.\n\n\nReduces the Revolving Commitment from (a) $13,500,000, through August 30, 2023; (b) to $10,500,000 through October 30, 2023; (c) to $9,000,000 through November 29, 2023; (d) to $5,000,000 through December 30, 2023; (e) to $4,500,000 through January 30, 2024; (f) and to $4,000,000 from and after January 31, 2024.\n\n\nRequires the Company to list its real estate property located at 10302 East 55th Place, Tulsa, Oklahoma 74146 for sale with a licensed commercial real estate broker satisfactory to the Lender on or before August 18, 2023.\n\n\nContingent upon the occurrence of an Event of Default in the agreement, the Company shall within 15 days list its real estate property for sale located at 5402 South 122nd Ave., Tulsa, Oklahoma, 74146 with a licensed commercial real estate broker satisfactory to the Lender.\n\n\nPer Mr. White, \"During fiscal 2024, we have been working with our Bank to reduce our overall credit exposure. Selling our old building, which recently appraised for $5.1 million, and paying down our line of credit, as outlined in the new agreement, will further strengthen our balance sheet. Our remaining property, the Hilti Complex, recently appraised at approximately $40 million and we expect our inventory levels to be approximately $53 million at the end of the fiscal year. That combined asset value of over $93 million far exceeds our expected debts with the bank at the end of January 2024 of approximately $36 million.\"\nMr. White continued, \"Amidst the challenges of today's economic landscape, we are proud to reaffirm our steadfast commitment to our retailers, our Brand Partners, our customers, our employees and our shareholders. Currently and in the coming months, we will be offering bold and strategic sales, promotions, and incentives. As we navigate these times together, our dedica...