**Hooker Furnishings Corporation Enters into Amended and Restated Loan Agreement with Bank of America**

Hooker Furnishings Corporation (NASDAQ: HOFT) recently announced the signing of an Amended and Restated Loan and Security Agreement with Bank of America, N.A. and its subsidiaries. The agreement, signed on December 5, 2024, involves Hooker Furnishings Corporation and its wholly owned subsidiaries, Bradington-Young, LLC, Sam Moore Furniture LLC, and Home Meridian Group, LLC, collectively referred to as the “Borrowers.”

The Amended and Restated Loan Agreement replaces the existing agreement and provides a revolving credit facility of up to $70,000,000, which includes a subline of $8,000,000 for letters of credit. There is also an option to increase the Revolving Commitment by up to $30,000,000 under specific conditions.

The proceeds from the loans and letters of credit under the new agreement will be utilized for various purposes, including the replacement of existing loans and letters of credit, payment of associated fees and expenses, as well as for general working capital and other corporate uses.

Under the terms of the agreement, the availability of loans and letters of credit is determined by a borrowing base formula, taking into account factors such as accounts receivable, inventory value, in-transit inventory, and life insurance cash surrender value of company-owned life insurance policies.

Interest on the outstanding loans will be calculated based on the Term SOFR Rate plus a margin of 1.75%, with adjustments made monthly. Additionally, there are fees associated with letters of credit, including a letter of credit fee and a fronting fee, as well as a monthly unused commitment fee.

The Borrowers have the flexibility to prepay the principal amounts borrowed at any time without penalty, provided all accrued interest is settled. The Revolving Commitment is set to conclude on December 5, 2029.

To secure the obligations under the agreement, the Borrowers have pledged a first priority security interest in most assets, excluding real estate. The agreement also includes customary representations and warranties, as well as affirmative and negative covenants that the Borrowers are required to adhere to.

Bank of America and its affiliates, the lender in this agreement, have previous financial relationships with Hooker Furnishings Corporation and its subsidiaries involving the provision of financial services, for which customary fees have been charged.

The complete details of the Amended and Restated Loan Agreement can be found in Exhibit 10.1 of the 8-K filing submitted by Hooker Furnishings Corporation to the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Hooker Furnishings’s 8K filing here.

About Hooker Furnishings

Hooker Furnishings Corporation designs, manufactures, imports, and markets residential household, hospitality, and contract furniture. It operates in three segments: Hooker Branded, Home Meridian, and Domestic Upholstery. The Hooker Branded segment offers design categories, including home entertainment, home office, accent, dining, and bedroom furniture under the Hooker Furniture brand; and imported upholstered furniture under the Hooker Upholstery brand.