Delta Apparel, Inc., M.J. Soffe, LLC, Culver City Clothing Company, Salt Life, LLC, and DTG2Go, LLC Enter into Eleventh Amendment to the Fifth Amended and Restated Credit Agreement with Wells Fargo Bank
October 11, 2023 at 04:02 pm EDT
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On October 6, 2023, Delta Apparel, Inc. and its subsidiaries, M.J. Soffe, LLC, Culver City Clothing Company, Salt Life, LLC, and DTG2Go, LLC (collectively, the ?Company?) entered into an Eleventh Amendment to the Fifth Amended and Restated Credit Agreement (Agreement) with Wells Fargo Bank (Agent) and the other lenders therein (Eleventh Amendment). The Eleventh Amendment, among other things, extends the Accommodation Period established in the Ninth Amendment to the Agreement through the later of (x) November 4, 2023, and (y) the date upon which the Borrowers show Availability, as well as Average Availability for the preceding 30 consecutive days, equal to or more than the greater of (i) 17.50% of the lesser of (A) the Borrowing Base or (B) the Maximum Revolver Amount and (ii) $25,000,000. The Eleventh Amendment also, among other things, (i) requires the Borrowers to maintain a Fixed Charge Coverage Ratio of 1.00 to 1.00 for the immediately preceding twelve (12) month period as of the fiscal month ending November 4, 2023, and continuing with respect to the end of every fiscal month thereafter and (ii) eliminates the minimum EBITDA requirements established in the Ninth Amendment to the Agreement for the month ending September 2, 2023, and thereafter.
Delta Apparel, Inc. is a vertically integrated, international apparel company. The Company designs, manufactures, sources, and market a diverse portfolio of core activewear and lifestyle apparel products under its primary brands of Salt Life, Soffe, and Delta. It operates through two segments: Delta Group and Salt Life Group. The Delta Group segment consists of its business units primarily focused on activewear styles: DTG2Go and Delta Activewear. The Salt Life Group segment comprises its Salt Life business, which is built on the authentic, aspirational Salt Life lifestyle brand. Delta Activewear is a preferred supplier of activewear apparel to regional and global brands, as well as direct-to-retail and wholesale markets. It also specializes in selling casual and athletic products through a variety of distribution channels and tiers. Its On-Demand DC digital solution provides retailers and brands with immediate access to utilize DTG2Goâs network of print and fulfillment facilities.
Delta Apparel, Inc., M.J. Soffe, LLC, Culver City Clothing Company, Salt Life, LLC, and DTG2Go, LLC Enter into Eleventh Amendment to the Fifth Amended and Restated Credit Agreement with Wells Fargo Bank