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Exhibit 4.2
FOURTH AMENDMENT TO REVOLVING CREDIT
AGREEMENT
THIS FOURTH AMENDMENT TO REVOLVING CREDIT
AGREEMENT ("Amendment") is dated effective
as of December 31 2006, by and among AMERICA’S
CAR MART, INC. , an Arkansas corporation
and TEXAS CAR-MART, INC. , a
Texas corporation (separately and collectively, "Borrower")
and BANK OF OKLAHOMA, N.A. ("Bank").
RECITALS
A. Reference is made to
the Revolving Credit Agreement dated as of June 23, 2005, and
amended by the First Amendment to Revolving Credit Agreement, dated
effective as of June 23, 2005, and executed August 19, 2005, the
Second Amendment to Revolving Credit Agreement, dated effective as
of September 30, 2005 and the Third Amendment to Revolving Credit
Agreement, dated effective April 28, 2006 (as amended, the "ACM
Credit Agreement"), by and among Borrowers and Bank, pursuant to
which currently exists a $10,000,000 Revolving Line of Credit and a
$10,000,000 Term Loan in favor or Borrowers.
B. Borrower and Bank
hereby intend to make certain changes to the ACM Credit Agreement
for compliance purposes. Terms used herein shall have the meanings
given in the ACM Credit Agreement unless otherwise defined
herein.
AGREEMENT
For valuable consideration received, the parties
agree to the following.
1. Amendments to ACM
Credit Agreement . The ACM Credit Agreement is amended as
follows.
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1.1.
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The term "Prime Rate" is amended to read as
follows:
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"Prime Rate" means a rate which is subject to
change from time to time based on changes in an index which is the
BOKF National Prime Rate, described as the rate of interest set by
BOK Financial Corporation, in its sole discretion, on a daily basis
as published by BOK Financial Corporation ("BOKF") from time to
time (the "Index"). The Index is not necessarily the lowest rate
charged by Lender on its loans and is set by Lender in its sole
discretion. If the Index becomes unavailable during the term of
this loan, Lender may designate a substitute index after notifying
Borrower. Lender will tell Borrower the current index rate upon
Borrower’s request. The interest rate change will not occur
more often than each day. Borrower understands that Lender may make
loans based on other rates as well. NOTICE: Under no circumstances
will the interest rate on this Note be more than the maximum rate
allowed by applicable law. Whenever increases occur in the interest
rate, Lender, at its option, may do one or more of the following:
(A) increase Borrower’s payments to ensure Borrower’s
loan will pay off by its original final maturity date, (B) increase
Borrower’s payments to cover accruing interest, (C) increase
the number of Borrower’s payments, and (D) continue
Borrower’s payments at the same amount and increase
Borrower’s final payment.
1.2.
Section 2.05 is hereby amended to replace the
existing pricing grid with the following:
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Tier
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Funded Debt to EBITDA*
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Adjusted Prime Rate
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Adjusted LIBOR Rate
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I
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<1.75
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Prime Rate minus
25 bps
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LIBOR Rate plus 275 bps
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II
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> 1.75 and
<2.00
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Prime Rate plus 0.0
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LIBOR rate plus
300 bps
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III
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> 2.00 and
<2.25
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Prime Rate plus
25 bps
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LIBOR rate plus
325 bps
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IV
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> 2.25 and
<2.50
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Prime Rate plus
50 bps
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LIBOR rate plus
350 bps
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V
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> 2.50 and
<3.50
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Prime Rate plus
75 bps
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LIBOR rate plus
375 bps
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VI
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> 3.5
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Prime Rate plus
100 bps
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LIBOR rate plus
400 bps
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*Combined Ratio for American Car Mart, Inc,.,
Texas Car-Mart, Inc. and Colonial Auto Finance, Inc.
The Adjusted Rate shall be determined in
accordance with the foregoing table based on the combined Funded
Debt to EBITDA ratio as reflected in the then most recent
financials. Adjustments, if any, shall be effective five Business
Days after Bank of Arkansas, N.A. has received the applicable
financials. If the Borrower fails to deliver the financials at the
time required, then the rate shall be the highest rate
set
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