UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 1.01. Entry into a Material Definitive Agreement.
On May 10, 2024, Bisco Industries, Inc. (“Bisco”), a wholly-owned subsidiary of EACO Corporation (”EACO,” together with Bisco, the “Company”), executed a Change in Terms Agreement dated as of April 12, 2024 (the “Amendment”) with Citizens Business Bank (the “Lender”) to modify terms of that certain Business Loan Agreement dated as of November 5, 2022 between Bisco and the Lender, as amended (the “Loan Agreement”), which provided the Company with a $15,000,000 line of credit. The Amendment (i) extends the expiration date of the line of credit under the Loan Agreement to February 15, 2026; and (ii) increases the principal loan amount under the line of credit to $20,000,000.
Under this line of credit as amended, Bisco may borrow from the Lender up to $20,000,000 from time to time, subject to Bisco’s continued compliance with certain financial and other covenants in the Loan Agreement. Bisco’s obligations under the line of credit are secured by substantially all of the Company’s assets. EACO also continues to guarantee the performance of all of Bisco’s obligations under this line of credit.
The foregoing descriptions are qualified in their entirety by the Amendment, which is filed herewith, and the Loan Agreement and other ancillary agreements previously filed with by the Company with the Securities and Exchange Commission.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
| Exhibit Number |
Description |
| 10.1 | Change In Terms Agreement dated April 12, 2024, between Bisco Industries, Inc. and Citizens Business Bank ($20,000,000 line of credit). |
| 10.2 | Business Loan Agreement dated April 12, 2024, between Bisco and Citizens Business Bank ($20,000,000) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| EACO CORPORATION | ||
| Date: May 14, 2024 | By: | /S/ MICHAEL NARIKAWA |
| Michael Narikawa, Principal Accounting Officer | ||