Monarch Casino & Resort Inc. filed SEC Form 8-K: Entry into a Material Definitive Agreement
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Item 1.01. Entry into a Material Definitive Agreement.
On December 31, 2024, Monarch Casino & Resort, Inc. (the “Company”), and certain of its subsidiaries, entered into the Sixth Amended and Restated Credit Agreement with Wells Fargo Bank, N.A., as administrative agent (the “Sixth Amended Credit Facility”). The Sixth Amended Credit Facility amends and restates the Company’s $100.0 million credit facility, dated as of February 1, 2023 (filed as Exhibit 10.16 to the Company’s Form 10-K filed on February 28, 2023) (the “Prior Facility”).
The Sixth Amended Credit Facility extends the maturity date to January 1, 2028 and removes the lien on real property under the Prior Facility. Additionally, the interest rate under the Sixth Amended Credit Facility is either SOFR (the Secured Overnight Financing Rate) plus a margin of 1.25% or the Base Rate (as defined in the Sixth Amended Credit Facility) plus a margin of 0.25%. The Commitment Fee Percentage (as defined in the Sixth Amended Credit Facility) was revised to be 0.25% per annum, and the Sixth Amended Credit Facility provides that the Company is required to maintain a Total Leverage Ratio (as defined in the Sixth Amended Credit Facility) of no more than 1.50:1.00.
The Company may use borrowings from the Sixth Amended Credit Facility to pay fees and expenses incurred in connection with the Sixth Amended Credit Facility, to refinance certain existing indebtedness, and to provide for working capital needs and for general corporate purposes. The Company’s obligations under the Sixth Amended Credit Agreement are secured by substantially all of the Company’s assets other than the real property released pursuant to the Sixth Amended Credit Facility. The Sixth Amended Credit Facility includes customary covenants and events of default.
The foregoing summary of the Sixth Amended Credit Facility does not purport to be complete and is qualified in its entirety by reference to the Sixth Amended Credit Facility, copy of which will be filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Monarch Casino and Resort, Inc. |
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Date: January 3, 2025 | /s/ Edwin S. Koenig |
| Edwin S. Koenig, Chief Accounting Officer and Corporate Treasurer (Principal Financial and Accounting Officer and Duly Authorized Officer) |