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)
February
10, 2010
Duckwall-ALCO
Stores, Inc.
(Exact
name of registrant as specified in its charter)
|
Kansas
|
0-20269
|
48-0201080
|
|
(State
or other jurisdiction
of
incorporation)
|
(Commission
File
Number)
|
(IRS
Employer
Identification
No.)
|
401
Cottage
Abilene,
Kansas 67410-2832
(Address
of principal executive offices) (Zip Code)
(785)
263-3350
(Registrant's
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since 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 February 10, 2010, Duckwall-ALCO
Stores, Inc. (the "Company"), closed on an Amended and Restated Credit Agreement
(the "Facility") with Bank of America, N.A., and Wells Fargo Retail Finance,
LLC. The $120 million Facility has a term of four years and replaces
the Company's previous revolving credit facility which was in the amount of $105
million. As of fiscal year end January 31, 2010, the Company had
$35.2 million borrowed under its previous revolving credit
facility.
.
The amount advanced to the Company on
any Base Rate Loan (as such term is defined in the Facility) bears interest at
the highest of (a) the rate of interest in effect for such day as publicly
announced from time to time by Bank of America, N.A. as its “prime rate”; (b)
the Federal Funds Rate for such day, plus 0.50%; and (c) the LIBO rate for a 30
day interest period as determined on such day, plus
1.0%. Amounts advanced with respect to any LIBO Borrowing for
any Interest Period, (as those terms are defined in the Facility), shall bear
interest at an interest rate per annum (rounded upwards, if necessary, to the
next 1/16 of one percent (1%)) equal to (a) the LIBO rate for such Interest
Period multiplied by (b) the Statutory Reserve Rate (as defined in the
Facility). The amount advanced is generally limited to 85% of eligible inventory
and eligible receivables. The loan agreement contains various restrictions
that are applicable when outstanding borrowings reach certain thresholds,
including limitations on additional indebtedness, prepayments, acquisition of
assets, granting of liens, certain investments and payments of
dividends.
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 above in Item
1.01 is incorporated herein by reference.
Item
7.01 Regulation
FD Disclosure.
On February 16, 2010, the Company
issued a press release attached as Exhibit 99.1, incorporated into this Item
7.01 by reference, to announce that the Company has closed on the Facility
described above in Item 1.01.
Item
9.01. Exhibits.
(d)
Exhibits
99.1 Press
Release dated February 16, 2010, furnished solely for the purpose of
incorporation by reference into Items 7.01 and 9.01.
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:
February 16, 2010
|
DUCKWALL-ALCO
STORES, INC.
By:
/s/ Larry
Zigerelli
Larry Zigerelli
President and Chief Executive
Officer
|
INDEX
TO EXHIBITS
99.1
Press
Release dated February 16, 2010.