SUBSEQUENT EVENT

3 Months Ended

Apr. 30, 2017

SUBSEQUENT EVENT

SUBSEQUENT EVENT

NOTE 15 — SUBSEQUENT EVENT

On May 15, 2017, Argan and certain of its subsidiaries entered into the Credit Agreement with the Bank which replaced a predecessor arrangement by modifying its terms to, among other things:

increase the Bank’s commitment amount from $10 million to $50 million including a revolving loan with interest at the 30-day LIBOR plus 2.00%;

add an accordion feature which allows for an additional commitment amount of $10 million, subject to certain conditions; and  

extend the maturity date three years from May 31, 2018 to May 31, 2021, which effectively provides for a four-year credit commitment.

Note 8 to the condensed consolidated financial statements describes additional features of the Credit Agreement.