UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 20, 2006
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Culp, Inc.
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(Exact Name of Registrant as Specified in its Charter)
North Carolina 0-12781 56-1001967
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
1823 Eastchester Drive
High Point, North Carolina 27265
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(Address of Principal Executive Offices)
(Zip Code)
(336) 889-5161
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former name or address, if changed from last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a Material Definitive Agreement.
On July 20, 2006, Culp, Inc. (the "Company") and Wachovia Bank, National
Association (formerly, Wachovia Bank, N.A.) (referred to herein as "Wachovia")
entered into a Ninth Amendment to Amended and Restated Credit Agreement (the
"Agreement") to amend and renew the Company's revolving line of credit with
Wachovia. The Agreement provides for an unsecured line of credit in the amount
of $8,000,000, to be used for working capital, capital expenditures and to
support letters of credit, required by the Company for various aspects of its
operations ,with letters of credit not to exceed $5,500,000. The line of credit
has a term expiring August 31, 2007 and bears interest at LIBOR plus an
adjustable margin as defined in the agreement. The fees for this amendment were
$10,000. The financial covenants applicable to the Company that have been
amended or updated under the Agreement include the following:
o minimum quarterly EBITDA targets (based upon the latest four
quarters), with EBITDA being calculated excluding restructuring and
related charges and other non-cash charges.
o $2,500,000 annual limit on capital expenditures.
o a liquidity requirement providing that the Company must maintain
collected deposit balances with Wachovia of at least $2,000,000.
A copy of the Ninth Amendment to Amended and Restated Credit Agreement is
filed herewith as Exhibit 10.1, and the description provided above is qualified
by reference to the complete terms of the Agreement as set forth in Exhibit
10.1.
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.
Date: July 24, 2006
Culp, Inc.
By: Kenneth R. Bowling
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Vice President-Finance, Treasurer