Educational Development Corporation Announces Executed Fifth Amendment to Credit Agreement

Core Viewpoint - Educational Development Corporation has executed a Fifth Amendment to its credit agreement, adjusting its revolving loan commitment and preparing for the sale of its headquarters, which is expected to enhance its financial position and operational capacity [2][4]. Group 1: Credit Agreement Amendment - The Fifth Amendment to the Existing Credit Agreement with BOKF, NA adjusts the maximum availability of the Revolving Loan commitment to $7.0 million, effective May 31, 2024, through the maturity date of October 4, 2024 [2]. - An additional decrease in the Revolving Loan to $4.5 million will occur from the effective date of the sale of the Company's headquarters building [2]. Group 2: Sale of Headquarters - The Company announced a Commercial Real Estate Contract with Rockford Holdings for the sale of its headquarters and distribution warehouse, expected to be completed by September 12, 2024 [3]. - The funds from the sale of the Hilti Complex are anticipated to fully pay off the borrowings under the Revolver and Term Loans with the lender [4]. Group 3: Operational Strategy - The extension of the Revolving Loan aligns with the expected timeframe for closing on the sale of the Hilti Complex, ensuring sufficient support for continued operations [4]. - The Company aims to return to profitability, with the available line of $4.5 million post-sale providing necessary operational support [4]. Group 4: Company Overview - Educational Development Corporation specializes in publishing children's books and owns brands such as Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys, with products sold through 4,000 retail outlets and independent brand partners [5].