On Delta Apparel, Inc. and its subsidiaries, M.J. Soffe, LLC, Culver City Clothing Company (f/k/a Junkfood Clothing Company), Salt Life, LLC, and LLC (f/k/a Art Gun, LLC) entered into a Fifth Amendment to the Fifth Amended and Restated Credit Agreement with Wells Fargo Bank (the “Agent”) and the other lenders set forth therein (the “Fifth Amendment”). The Fifth Amendment amends the financial covenant provisions from the amendment date through including effectively lowering the minimum availability thresholds and removing the requirement that our Fixed Charge Coverage Ratio (“FCCR”) for the preceding -month period must be less than to The Fifth Amendment also, among other things, (i) allows for an additional days of aged receivables from customers in the borrowing base through ii) ceases amortization of real estate and machinery and equipment assets in the borrowing base through iii) postpones amortization of trademark assets in the borrowing base until iv) amends the definition of Fixed Charge Coverage Ratio to reference the monthly amortization of the borrowing bases that were amended as part of the Fourth Amendment to the Fifth Amended and Restated Credit Agreement on v) amends the LIBOR rate definition to include a floor rate of and (vi) requires weekly reporting of accounts receivable to the Agent through

 

We expect the Fifth Amendment will enhance our borrowing base and allow us to access more of our availability under the Amended Credit Agreement while easing the financial covenant restrictions for the remainder of fiscal

 

See Part II, Item Other Information for additional detail regarding the Fifth Amendment.