---
schema_version: "secwatch.filing_event.v1"
accession: "0001562762-25-000045"
form_type: "8-K"
ticker: "CATO"
cik: "0000018255"
company_name: "CATO CORP"
filed_at: "2025-03-19T23:59:59+00:00"
generated_at: "2026-05-24T12:05:05.856643+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.55
calibrated_materiality_score: 0.55
confidence: "high"
source: SEC EDGAR
---

# Cato Corp enters $35M ABL credit facility with Wells Fargo, matures 2028

## Summary
- New $35M asset-based revolving facility replaces prior credit agreement; no outstanding balance at termination.
- Matures March 13, 2028; includes $15M uncommitted accordion feature for potential increase to $50M.
- Borrowing base: 90% of eligible credit card receivables plus 90% of net recovery percentage of eligible inventory.
- Interest: SOFR + 150 bps or Base Rate + 50 bps; unused commitment fee 37.5 bps or 25 bps.
- Covenants limit dividends, debt, liens; cash dominion triggered when Excess Availability < $10M or 15% of borrowing base.

## SEC filing metadata
- accession: 0001562762-25-000045
- form_type: 8-K
- ticker: CATO
- cik: 0000018255
- company_name: CATO CORP
- filed_at: 2025-03-19T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.55
- calibrated_materiality_score: 0.55
- confidence: high
- sec_items: 1.01, 1.02, 2.03, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/18255/000156276225000045/0001562762-25-000045-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/18255/000156276225000045/cato-20250313.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001562762-25-000045
- JSON: https://secwatch.observer/filing/0001562762-25-000045.json
- Plain text: https://secwatch.observer/filing/0001562762-25-000045.txt

## Key facts
- Debt Financings
  CATO CORP incurred revolving credit of up to $35 million with Wells Fargo Bank, National Association at Base rate borrowings bear interest at an annual rate equal to 50 basis points ab maturing March 13, 2028.
  - Instrument: revolving credit
  - Principal: up to $35 million
  - Counterparty: Wells Fargo Bank, National Association
  - Rate: Base rate borrowings bear interest at an annual rate equal to 50 basis points ab
  - Maturity: March 13, 2028
  - Event: incurrence
  source text: On March 13, 2025, The Cato Corporation, as borrower (the “Company”), and certain domestic subsidiaries, as borrowers and guarantors, entered into a Credit Agreement (the “ABL Credit Agreement”) and related loan documents, by and among the Company, those other domestic subsidiaries, and Wells Fargo Bank, National Association, as the lender (the “Lender”), to establish an asset-based revolving credit facility (the “ABL Facility”) in an amount up to $35 million.
  evidence_url: https://www.sec.gov/Archives/edgar/data/18255/000156276225000045/0001562762-25-000045-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.