7.02 Wording slips in the credit facility paragraphs and Item 7A
Company E · a US-listed home furnishings retailer · Drafting slip
In brief
The credit facility paragraphs read '([n]%at [date])' with no space, 'In [date],' with a stray comma, and 'to, among things,' where 'among other things' is meant. Item 7A says 'Except for the [amount] irrevocable standby letter of credit ... we have no borrowings', which presents an undrawn letter of credit as a borrowing.
The evidence, as filed
What the filing shows, and what the rule requires
| What the filing shows | What the rule requires |
|---|---|
'[n]%at'; 'In [date],'; 'to, among things,'; 'Except for the [amount] irrevocable standby letter of credit ... we have no borrowings'. | '[n]% at'; 'In [date],'; 'to, among other things,'; 'We have no borrowings under the 2021 Credit Facility; a [amount] standby letter of credit issued under it reduces available capacity.' |
Why it matters
None beyond presentation.
Exposure
Drafting only.
Our workings
Drafting slips only; no figure is affected. The 'among things' wording also appears in the debt note.
Management’s best defense, and our reply
Management would say these are cosmetic and that the letter of credit sentence is clear in context, since Note 6 explains the instrument. That is accepted, which is why the slips are listed as drafting only and carry no consequence.
The fix
- Correct the four wordings as shown in the should-be column.
Evidence relied on
| # | What it shows | Type | Where |
|---|---|---|---|
| 1 | Missing space | Document | Form 10-K 2025, page 49 |
| 2 | Stray comma after the month | Document | Form 10-K 2025, page 49 |
| 3 | 'among other things' intended | Document | Form 10-K 2025, page 49 |
| 4 | A letter of credit described as an exception to 'no borrowings' | Document | Form 10-K 2025, page 52 |
Prepared by Pramanex from the company’s public SEC filings, without the company’s involvement, to show how a 10-K Pre-filing Check reads. The company is not named, and nothing on this page is a statement about any identifiable company. Observations are not an audit, review or other attestation or assurance engagement, and not legal advice. An SEC-style question is a question, not a conclusion.
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