Duluth Holdings Inc. Amends Credit Agreement, Reducing Revolving Commitment to $100 Million

Duluth Holdings Inc. (NASDAQ: DLTH) filed a Form 8-K with the Securities and Exchange Commission on January 31, 2025, announcing the entry into the Second Amendment to its Credit Agreement. The Second Amendment, effective as of January 31, 2025, involves various modifications to the existing Credit Agreement dated May 14, 2021.

Among the key changes, the Second Amendment decreases the revolving commitment from $200 million to $100 million. It also revises the definition of “Applicable Rate” to specify pricing terms in the scenario of a Rent Adjusted Leverage Ratio equal to or greater than 3.50:1.0. Additionally, exceptions to the restriction on restricted payments are limited to specific instances, including making dividends or distributions by subsidiaries to the Company and the acquisition of equity interests to meet tax withholding obligations related to restricted stock or awards under employee incentive plans.

Furthermore, the Second Amendment establishes that the Maximum Rent Adjusted Leverage Ratio and the Minimum Fixed Charge Coverage Ratio will be measured starting from the fiscal quarter ending May 2, 2021, and quarterly thereafter, with the exception of the fiscal quarter ending February 2, 2025.

The reduction in the revolving commitment aims to align the credit facility with Duluth’s cash requirements for seasonal inventory builds and capital expenditures, leading to cost savings. The Second Amendment, labeled as Exhibit 10.1, is filed with this Form 8-K and is hereby incorporated by reference. The summary provided of the Second Amendment is not exhaustive and is subject to the complete terms laid out in the agreement.

In compliance with Section 9.01, the company disclosed the following exhibit:

– Exhibit 10.1: Second Amendment, dated January 31, 2025, involving Duluth Holdings Inc., the Lenders, Bank of America, N.A., BofA Securities, Inc., and Keybanc Capital Markets Inc.
– Exhibit 104: Cover Page interactive data file containing embedded inline XBRL document.

On February 6, 2025, Heena Agrawal, Senior Vice President and Chief Financial Officer of Duluth Holdings Inc., signed the report on behalf of the company.

This article is a summary of the information disclosed within the Form 8-K filed by Duluth Holdings Inc. with the SEC on January 31, 2025.

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

Duluth Company Profile

Duluth Holdings Inc sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, tanks, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Bucket Master, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Co, Duluthflex, Fire Hose, Longtail T, No-Yank, No Polo Shirt, Wild Boar Mocs, and Buck Naked.