secwatch.observer — SEC 8-K summary
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Issuer:     CROWN CRAFTS INC (CRWS)
CIK:        0000025895
Form:       8-K
Filed at:   2024-07-22T23:59:59+00:00
Accession:  0001437749-24-023124
Event type: m_and_a
Sentiment:  neutral
Materiality: 0.75
Item codes: 1.01, 2.01, 2.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Crown Crafts acquires Baby Boom assets for $18M cash; funds with $8M term loan
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- Acquired substantially all assets of Baby Boom Consumer Products for $18M cash via subsidiary NoJo Baby, subject to working capital adjustment.
- Purchase price funded by $8M term loan from CIT (48 monthly installments, SOFR+2.25%) and increased revolver capacity to $40M.
- Term loan requires 50% of Excess Cash Flow prepayments within 90 days of fiscal year-end; Excess Availability must be at least 50% of outstanding term loan.
- Financing Agreement amended: revolver extended to July 2029; Fixed Charge Coverage ratio of 1.15:1.0 required until term loan repaid.
- $75K escrow for indemnification claims and $500K escrow for post-closing purchase price adjustments; representation and warranty insurance obtained.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/25895/000143774924023124/0001437749-24-023124-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/25895/000143774924023124/crws20240720_8k.htm
  HTML page:      https://secwatch.observer/filing/0001437749-24-023124

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