Avalon Holdings Corp (NYSE American:AWX) has amended its existing Line of Credit Agreement with Premier Bank, the company disclosed in a recent SEC filing. The amendment extends the maturity date of the agreement by one year, from July 31, 2025, to July 31, 2026.
This financial maneuver comes as Avalon Holdings, a company operating in the refuse systems industry, reported $3.2 million drawn under the Line of Credit Agreement as of Monday. The agreement, initially dated May 31, 2018, and previously amended on September 18, 2023, has now been altered to give the company more time to meet its financial obligations.
The details of the amended Line of Credit Agreement were included as exhibits in the 8-K report filed with the SEC. The exhibits, namely Business Loan Agreement, Promissory Note, and Commercial Security Agreement, outline the terms of the financial arrangement between Avalon Holdings and Premier Bank.
Avalon Holdings, headquartered in Warren, Ohio, has its fiscal year-end on December 31. The company's Class A Common Stock is traded on the NYSE American under the ticker symbol AWX.
The SEC filing, signed by Michael J. Havalo, Chief Financial Officer and Treasurer of Avalon Holdings, confirms the formalization of the agreement on Tuesday, with the earliest event reported happening the day before.
InvestingPro Insights
Avalon Holdings Corp's (NYSE American:AWX) recent amendment of its Line of Credit Agreement aligns with the company's financial strategy as reflected in the latest data and tips from InvestingPro. The company's revenue for the last twelve months as of Q2 2024 stood at $83.15 million, with a slight decline in revenue growth of -4.02%. Despite this, the company has seen a substantial EBITDA growth of 47.17% during the same period, signaling improving operational efficiency.
InvestingPro Tips highlight that Avalon Holdings operates with a moderate level of debt and has been profitable over the last twelve months, which could be reassuring for stakeholders considering the extension of the Line of Credit Agreement. Moreover, the company's strong return over the last three months, with a price total return of 23.22%, suggests a positive market sentiment which might be attributed to effective management decisions such as the recent credit agreement amendment.
Investors should note that Avalon Holdings does not pay a dividend, which could influence investment decisions for those seeking regular income. For a deeper dive into Avalon Holdings' financial health and strategic positioning, additional InvestingPro Tips are available, offering comprehensive insights into the company's performance and potential (https://www.investing.com/pro/AWX).
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