UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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| Item 1.01. | Termination of a Material Definitive Agreement |
Effective as of May 3, 2024 (the “Termination Date”), Zumiez Inc. (the “Registrant”) together with its subsidiary Zumiez Services Inc. (“Zumiez Services”) as the co-borrower (collectively with the Registrant and certain other subsidiaries as guarantors, the “Company”), terminated a Credit Agreement between the Company and Wells Fargo Bank, N.A. (the “Bank”) originally entered into on December 7, 2018 and as subsequently amended on October 14, 2021, July 27, 2023 and November 30, 2023 (the “Credit Agreement”).
The Credit Agreement provided the Company with a senior secured credit facility (“credit facility”) for working capital and other general corporate purposes of up to $25.0 million through December 1, 2024. The credit facility provided for the issuance of standby letters of credit in an amount not to exceed $17.5 million outstanding at any time and with a term not to exceed 365 days beyond the maturity of the credit facility. The commercial line of credit provided for the issuance of commercial letters of credit in an amount not to exceed $10.0 million and with terms not to exceed 120 days beyond the maturity of the credit facility. The Credit Agreement contained various representations, warranties and restrictive covenants. There were no borrowings or open commercial letters of credit outstanding under the credit facility as of the Termination Date. At the time of the Termination Date, there were $3.4 million in issued, but undrawn, standby letters of credit that are being transitioned to restricted deposits with the Bank.
There were no early termination penalties incurred by the Company in connection with the termination of the Credit Agreement. As referenced above, there were no borrowings or open commercial letters of credit outstanding under the credit facility and the Company believes that its significant sources of liquidity continue to be funds generated by its operating activities and available cash, cash equivalents and current marketable securities. Termination of the Credit Agreement allows the Company to discontinue paying an unused commitment fee of 0.50% of the credit facility amount per annum.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ZUMIEZ INC. | ||||||
| Dated: May 9, 2024 | By: | /s/ Chris K. Visser | ||||
| Chris K. Visser | ||||||
| Chief Legal Officer & Secretary | ||||||