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Subsequent Events
3 Months Ended
Apr. 29, 2017
Subsequent Events [Abstract]  
Subsequent Events

(17) Subsequent Events

Stock Repurchase Agreement

On May 1, 2017, the Company entered into a stock repurchase agreement with a trust established by Albert W. Ondis to repurchase 826,305 shares of the Company’s common stock held by the trust at a per share price of $13.60, for an aggregate repurchase price of $11.2 million. This stock repurchase was consummated on May 2, 2017 and was funded using existing cash on hand. Following this stock repurchase, the Ondis trust owns 36,000 shares of the Company’s common stock.

April L. Ondis, a director of the Company, is a beneficiary of the trust. The stock repurchase was authorized and approved by the Company’s Audit Committee as a related party transaction. Prior to entering into the agreement, the Company obtained an opinion from an independent investment banking firm that the consideration to be paid by the Company to the trust pursuant to the stock repurchase agreement would be fair to the public stockholders of the Company, other than the trust, from a financial point of view.

Credit Agreement Amendment

In connection with the stock repurchase, the Company entered into a consent and amendment, dated as of May 1, 2017, relating to the Credit Agreement, dated as of February 28, 2017, among the Company, its subsidiaries, ANI ApS and TrojanLabel ApS, and Bank of America, N.A., as lender. Solely for purposes of effecting the stock repurchase, the Amendment increased the aggregate amount of certain repurchases of Company equity interests permitted to be made by the Company under the Credit Agreement in the Company’s fiscal year ending January 31, 2018, from $5,000,000 to $12,000,000, subject to certain conditions. The Amendment prohibits the Company from making other repurchases of Company equity interests under such permission in the fiscal year ending January 31, 2018. The Amendment also provides that the aggregate amount paid in cash by the Company to effect the stock repurchase shall not be deducted from the Company’s consolidated EBITDA for the purposes of calculating the consolidated fixed charge coverage ratio covenant to which the Company is subject under the Credit Agreement with respect to any trailing four-fiscal-quarter measurement period through and including the measurement period ending January 31, 2018.