SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
Date of Report: May 6, 1996
Hampton Industries, Inc.
(Exact name of registrant as specified in its charter)
North Carolina 56-0482565
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
Commission file number 1-6105
2000 Greenville Hwy., P.O. Box 614, Kinston, NC 28502-0614
(Address of principal executive offices) (Zip Code)
(919) 527-8011
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address, if changed since last report.)
Item 5. Other Events
On May 3, 1996, Hampton Industries, Inc. entered into a new
credit facility ("New Facility") with BNY Financial Corporation,
as Agent. The New Facility provides for a maximum line of credit
of $100,000,000, which includes both direct loans and letters of
credit. The initial proceeds of the New Facility were used to
repay the outstanding indebtedness under the Company's then
existing bank line of credit.
Availability under the New Facility is based on a formula of
eligible accounts receivable and eligible inventory and provides
for a seasonal overadvance of up to $23,000,000 within the
$100,000,000 maximum line of credit. Direct borrowings bear
interest at the London Interbank Offered Rate or the Prime Rate,
at the option of the Company, plus the applicable margin (as
defined in the New Facility). Borrowings are collateralized by
accounts receivable, inventory and general intangibles of the
Company and its subsidiaries. The New Facility expires in May
1999.
The New Facility contains financial covenants, including but
not limited to, financial covenants related to tangible net
worth and interest coverage, and restricts fixed asset
purchases, and does not allow for the payment of cash dividends.
The Company is not required to maintain compensating balances,
however, it is required to pay a fee of 1/4% of 1% per annum on
the unused portion of the total facility plus certain other
administrative costs.
Signatures
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
Hampton Industries, Inc.
Registrant
Date: May 6, 1996 S/ROBERT J. STIEHL, JR.
Robert J. Stiehl, Jr.
Executive Vice President
(Chief Financial Officer)
