<SEC-DOCUMENT>0001157523-20-000460.txt : 20200402
<SEC-HEADER>0001157523-20-000460.hdr.sgml : 20200402
<ACCEPTANCE-DATETIME>20200402161526
ACCESSION NUMBER:		0001157523-20-000460
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20200327
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
FILED AS OF DATE:		20200402
DATE AS OF CHANGE:		20200402

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CULP INC
		CENTRAL INDEX KEY:			0000723603
		STANDARD INDUSTRIAL CLASSIFICATION:	BROADWOVEN FABRIC MILLS, COTTON [2211]
		IRS NUMBER:				561001967
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			0503

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12597
		FILM NUMBER:		20769148

	BUSINESS ADDRESS:	
		STREET 1:		1823 EASTCHESTER DRIVE
		CITY:			HIGH POINT
		STATE:			NC
		ZIP:			27265
		BUSINESS PHONE:		3368895161

	MAIL ADDRESS:	
		STREET 1:		P O BOX 2686
		CITY:			HIGH POINT
		STATE:			NC
		ZIP:			27265
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
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<DESCRIPTION>CULP, INC. 8-K
<TEXT>
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    <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt; font-weight: bold;">UNITED STATES</div>
    <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</div>
    <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt; font-weight: bold;">WASHINGTON, D.C.&#160; 20549</div>
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    <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 16pt; font-weight: bold;">FORM 8-K</div>
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    <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt; font-weight: bold;">CURRENT REPORT PURSUANT</div>
    <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt; font-weight: bold;">TO SECTION 13 OR 15(d) OF THE</div>
    <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt; font-weight: bold;">SECURITIES EXCHANGE ACT OF 1934</div>
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    <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt;"><u>Date of Report (Date of earliest event reported) March 27, 2020</u></div>
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    <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 20pt; font-weight: bold;"><u>Culp, Inc.</u></div>
    <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 11pt;">(Exact Name of Registrant as Specified in its Charter)</div>
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            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt;">North Carolina</div>
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            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt;">1-12597</div>
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          <td style="width: 2.82%; vertical-align: top;">&#160;</td>
          <td style="width: 31%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt;">56-1001967</div>
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            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 11pt;">(State or Other Jurisdiction</div>
            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 11pt;">of Incorporation)</div>
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            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 11pt;">(Commission File Number)</div>
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          <td style="width: 2.82%; vertical-align: top;">&#160;</td>
          <td style="width: 31%; vertical-align: top;">
            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 11pt;">(I.R.S. Employer</div>
            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 11pt;">Identification No.)</div>
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          <td style="width: 100%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt;">1823 Eastchester Drive</div>
            <div style="text-align: center; font-family: 'Times New Roman',serif; font-size: 12pt;">High Point, North Carolina&#160; 27265</div>
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            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 11pt;">(Address of Principal Executive Offices)</div>
            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 11pt;">(Zip Code)</div>
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            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt;">(336) 889-5161</div>
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            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt;">(<font style="font-size: 11pt;">Registrant&#8217;s Telephone Number, Including Area Code)</font></div>
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            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 12pt;">Not Applicable</div>
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            <div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 11pt;">(Former name or address, if changed from last report)</div>
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    <div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif;">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 (<font style="font-style: italic;">see</font> General Instruction A.2. below):</div>
    <div><br>
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    <div style="text-align: justify; margin-left: 36pt;"><font style="font-family: 'Times New Roman',serif;">&#9744;<font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160; </font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;"></font>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
    <div style="text-align: justify;"> <br>
    </div>
    <div style="text-align: justify; margin-left: 36pt;">&#9744;<font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;"> </font>Soliciting

      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</div>
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      <div style="text-align: justify; font-family: 'Times New Roman',serif; margin-left: 36pt;">&#9744;<font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;"> </font>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</div>
      <div><br>
      </div>
      <div style="text-align: justify; font-family: 'Times New Roman',serif; margin-left: 36pt;">&#9744;<font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;"> </font>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</div>
      <div><br>
      </div>
      <div style="text-align: justify; color: #000000; font-family: 'Times New Roman', serif;">Securities registered pursuant to Section 12(b) of the Act:</div>
      <div><br>
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              <div style="text-align: center; color: #000000; font-family: 'Times New Roman', serif;">Title of each class</div>
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              <div style="text-align: center; color: #000000; font-family: 'Times New Roman', serif;">Trading Symbol</div>
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              <div style="text-align: center; color: #000000; font-family: 'Times New Roman', serif;">Name of exchange on which registered</div>
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              <div style="text-align: center; color: #000000; font-family: 'Times New Roman', serif;">Common stock, par value $0.05 per share</div>
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              <div style="text-align: center; color: #000000; font-family: 'Times New Roman', serif;">CULP</div>
            </td>
            <td style="width: 46%; vertical-align: top; border-width: 2px; border-style: solid; border-color: rgb(0, 0, 0);">
              <div style="text-align: center; color: #000000; font-family: 'Times New Roman', serif;">New York Stock Exchange</div>
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      <div style="background-color: #FFFFFF;">
        <div style="text-align: justify; color: #000000; font-family: 'Times New Roman', serif;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR &#167;230.405) or Rule
          12b-2 of the Securities Exchange Act of 1934 (17 CFR &#167;240.12b-2).&#160; Emerging growth company &#9744;</div>
        <div>&#160;</div>
      </div>
      <div style="text-align: justify; color: #000000; font-family: 'Times New Roman', serif;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
        revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. &#9744;</div>
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      <div style="text-align: justify; font-family: 'Times New Roman Bold', 'Times New Roman', serif; font-weight: bold;">Item 1.01 &#8211; Entry into a Material Definitive Agreement</div>
      <div><br>
      </div>
      <div style="background-color: #FFFFFF;">
        <div style="text-align: justify; text-indent: 36pt; color: #000000; font-family: 'Times New Roman', serif;">On March 27, 2020, Culp, Inc. (the &#8220;Company&#8221;) entered into a Sixth Amendment to Credit Agreement (&#8220;Sixth Amendment&#8221;), which amends the
          Credit Agreement between the Company and Wells Fargo Bank, National Association.&#160;&#160;The terms of the Sixth Amendment include, among other things, provisions that (i) increase the amount of our line of credit under the Credit Agreement from $25
          million to $30 million; (ii) extend the expiration date to August 15, 2022; (iii) reduce the amount of the Unencumbered Liquid Assets maintenance covenant from $15 million to $10 million; (iv) increase the maximum company debt to EBITDA ratio to
          3.00; (v) amend the pricing matrix that provides for interest payable on obligations under the agreement as a variable spread over LIBOR, based upon the company&#8217;s ratio of debt to EBITDA, to add a fourth price level for a ratio of debt to EBITDA
          that is greater than or equal to 2.25 to 1.00&#160; but less than 3.00 to 1.00; and (vi) add a new interest coverage covenant to establish a minimum EBITDA to interest expense ratio of not less than 3.00 to 1.00.&#160; As a result of the current
          unprecedented period of uncertainty relating to the COVID-19 pandemic, including the unknown duration and overall impact of this global pandemic, the Company has, as a proactive and precautionary measure, drawn down an aggregate of $20 million
          under the Credit Agreement.&#160; As of March 27, 2020, there were $20 million in borrowings outstanding under the Credit Agreement, with an additional $10 million available for borrowing pursuant to the increase in our line of credit under the Sixth
          Amendment to the Credit Agreement.&#160; There were also $250,000 in outstanding letters of credit provided by the Credit Agreement as of March 27, 2020, with $750,000 remaining for the issuance of additional letters of credit.</div>
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        <div style="text-align: justify; color: #000000; font-family: 'Times New Roman', serif;">&#160;</div>
      </div>
      <div><br>
      </div>
      <div style="text-align: justify; font-family: 'Times New Roman Bold', 'Times New Roman', serif; font-weight: bold;">Item 2.03 &#8211; Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant</div>
      <div><br>
      </div>
      <div style="text-align: justify; text-indent: 36pt; color: #000000; font-family: 'Times New Roman', serif;">The information set forth in Item 1.01 above is incorporated herein by reference.</div>
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        <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-weight: normal; font-style: normal;">2</font></div>
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      <div>&#160;</div>
      <div style="text-align: center; font-family: 'Dutch Bold 10pt','Times New Roman',serif; font-weight: bold;">SIGNATURES</div>
      <div><br>
      </div>
      <div><br>
      </div>
      <div style="text-align: justify; font-family: 'Dutch Bold 10pt', 'Times New Roman', serif; font-weight: bold;">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.</div>
      <div><br>
      </div>
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                <div>&#160;</div>
              </td>
              <td style="width: 5%;">
                <div>&#160;</div>
              </td>
              <td style="width: 50%; font-weight: bold;">CULP, INC.</td>
            </tr>
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              <td style="width: 45%;">
                <div>&#160;</div>
              </td>
              <td style="width: 5%;">
                <div>&#160;</div>
              </td>
              <td style="width: 50%; font-weight: bold;">(Registrant)</td>
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                <div>&#160;</div>
              </td>
              <td style="width: 5%;">
                <div style="font-weight: bold;">&#160;</div>
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              <td style="width: 50%;">
                <div style="font-weight: bold;">&#160;</div>
              </td>
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              <td style="width: 45%;">
                <div>&#160;</div>
              </td>
              <td style="width: 5%;">
                <div style="font-weight: bold;">&#160;</div>
              </td>
              <td style="width: 50%;">
                <div style="font-weight: bold;">&#160;</div>
              </td>
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              <td style="width: 45%;">
                <div>&#160;</div>
              </td>
              <td style="width: 5%; font-weight: bold;">By:<br>
              </td>
              <td style="width: 50%; font-weight: bold;"><font style="font-family: 'Dutch Bold 10pt','Times New Roman',serif;"><u>/s/ Kenneth R. Bowling</u></font></td>
            </tr>
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              <td style="width: 45%;">
                <div>&#160;</div>
              </td>
              <td style="width: 5%;">
                <div style="font-weight: bold;">&#160;</div>
              </td>
              <td style="width: 50%; font-weight: bold;">Chief Financial Officer</td>
            </tr>
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              <td style="width: 45%;">
                <div>&#160;</div>
              </td>
              <td style="width: 5%;">
                <div style="font-weight: bold;">&#160;</div>
              </td>
              <td style="width: 50%; font-weight: bold;">(principal financial officer)</td>
            </tr>
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              <td style="width: 45%;">
                <div>&#160;</div>
              </td>
              <td style="width: 5%;">
                <div style="font-weight: bold;">&#160;</div>
              </td>
              <td style="width: 50%;">
                <div style="font-weight: bold;">&#160;</div>
              </td>
            </tr>
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              <td style="width: 45%;">
                <div>&#160;</div>
              </td>
              <td style="width: 5%; font-weight: bold;">By:<br>
              </td>
              <td style="width: 50%; font-weight: bold;"><font style="font-family: 'Dutch Bold 10pt','Times New Roman',serif;"><u>/s/ Thomas B. Gallagher, Jr.</u></font></td>
            </tr>
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              <td style="width: 45%;">
                <div>&#160;</div>
              </td>
              <td style="width: 5%;">
                <div style="font-weight: bold;">&#160;</div>
              </td>
              <td style="width: 50%; font-weight: bold;">Corporate Controller</td>
            </tr>
            <tr>
              <td style="width: 45%;">
                <div>&#160;</div>
              </td>
              <td style="width: 5%;">
                <div style="font-weight: bold;">&#160;</div>
              </td>
              <td style="width: 50%; font-weight: bold;">(principal accounting officer)</td>
            </tr>

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      </div>
      <div><br>
      </div>
      <div><br>
      </div>
      <div style="text-align: justify; font-family: 'Dutch Bold 10pt', 'Times New Roman', serif; font-weight: bold;"><u>Dated:&#160; April 2, 2020</u></div>
      <div></div>
      <div><br>
      </div>
      <div><br>
      </div>
    </div>
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  <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-weight: normal; font-style: normal;">3</font></div>
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