---
schema_version: "secwatch.filing_event.v1"
accession: "0000038723-23-000060"
form_type: "8-K"
ticker: null
cik: "0000038723"
company_name: "1st FRANKLIN FINANCIAL CORP"
filed_at: "2023-05-16T23:59:59+00:00"
generated_at: "2026-06-15T00:12:09.628926+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.7
calibrated_materiality_score: 0.7
confidence: "high"
source: SEC EDGAR
---

# 1st Franklin Financial obtains waiver of EBITDA covenant defaults; amends loan with Wells Fargo

## Summary
- Waived existing defaults for Feb and Mar 2023 EBITDA ratio covenant violations.
- EBITDA ratio minimum: 1.05x for Apr-Nov 2023, then 1.25x, then 1.50x thereafter.
- Restricted payments amended: allows up to $10M or 25% net income for Cheek Family Foundation after Mar 2024.
- As of Apr 30, 2023: $82M outstanding, $148M available, interest rate 7.65%.
- Company paid $57,500 amendment fee to lenders.

## SEC filing metadata
- accession: 0000038723-23-000060
- form_type: 8-K
- cik: 0000038723
- company_name: 1st FRANKLIN FINANCIAL CORP
- filed_at: 2023-05-16T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.7
- calibrated_materiality_score: 0.7
- confidence: high
- sec_items: 2.03, 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/38723/000003872323000060/0000038723-23-000060-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/38723/000003872323000060/na-20230516.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0000038723-23-000060
- JSON: https://secwatch.observer/filing/0000038723-23-000060.json
- Plain text: https://secwatch.observer/filing/0000038723-23-000060.txt

## Key facts
- Debt Financings
  1st FRANKLIN FINANCIAL CORP amended credit facility with Wells Fargo Bank, N.A..
  - Instrument: credit facility
  - Counterparty: Wells Fargo Bank, N.A.
  - Event: amendment
  source text: The Fifth Amendment, among other things, waives existing events of default by the Company related to a financial covenant and amends the definition of “EBITDA Ratio”
  evidence_url: https://www.sec.gov/Archives/edgar/data/38723/000003872323000060/0000038723-23-000060-index.htm
- Material Agreements
  1st FRANKLIN FINANCIAL CORP amended Fifth Amendment with Wells Fargo Bank, N.A., as agent, and the other financial institutions from time to time party thereto (effective 2023-05-12).
  - Action: amendment
  - Agreement: credit facility
  - Counterparty: Wells Fargo Bank, N.A., as agent, and the other financial institutions from time to time party thereto
  - Effective: 2023-05-12
  source text: On May 12, 2023, 1 st Franklin Financial Corporation (the “Company”) entered into a Fifth Amendment (the “Fifth Amendment”) to the Amended and Restated Loan and Security Agreement dated as of November 19, 2019 (as amended from time to time, the “Amended Loan and Security Agreement”), by and among the Company, Wells Fargo Bank, N.A., as agent for the lenders (“the Agent”), and the other financial institutions from time to time party thereto.
  evidence_url: https://www.sec.gov/Archives/edgar/data/38723/000003872323000060/0000038723-23-000060-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.