secwatch.observer — SEC 8-K summary
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Issuer:     CATO CORP (CATO)
CIK:        0000018255
Form:       8-K
Filed at:   2025-03-19T23:59:59+00:00
Accession:  0001562762-25-000045
Event type: debt
Sentiment:  neutral
Materiality: 0.55
Item codes: 1.01, 1.02, 2.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/18255/000156276225000045/0001562762-25-000045-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/18255/000156276225000045/cato-20250313.htm
  HTML page:      https://secwatch.observer/filing/0001562762-25-000045

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