Tuesday Morning amends May credit facility to borrow $5 million early

Chicago, July 15 – Tuesday Morning Corp. and Tuesday Morning, Inc., as borrower, amended a May credit facility to allow Tuesday Morning to access a $5 million incremental first-in last-out term loan earlier than initially agreed upon, according to an 8-K filed with the Securities and Exchange Commission.

As initially outlined, the company could request the additional $5 million after Nov. 9.

However, with the amendment, the company is able to borrow that amount as of July 11 instead.

The amendment also provides that, until certain minimum borrowing availability levels are satisfied as described in the ABL Amendment, the borrower will be subject to additional reporting obligations.

Additionally, the borrower will retain a third-party business consultant acceptable to the ABL administrative agent, and the ABL administrative agent may elect to apply amounts in controlled deposit accounts to the repayment of outstanding borrowings under the ABL facility.

In addition, pursuant to the ABL amendment, certain subsidiaries of the borrower agreed to enter into and maintain a supply agreement with Gordon Brothers Retail Partners, LLC, an affiliate of a FILO B Lender, pursuant to which the program agent supplies inventory to the borrower and certain of its subsidiaries.

The facility includes a $110 million revolving credit facility and a $5 million first-in last-out term loan facility (separate from the second $5 million FILO facility).

Alter Domus (US) LLC is the administrative agent for the second term loan.

Tuesday Morning is a discount off-price retailer based in Dallas.

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