secwatch.observer — SEC 8-K summary
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Issuer:     1st FRANKLIN FINANCIAL CORP (—)
CIK:        0000038723
Form:       8-K
Filed at:   2023-05-16T23:59:59+00:00
Accession:  0000038723-23-000060
Event type: debt
Sentiment:  neutral
Materiality: 0.70
Item codes: 2.03, 1.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/38723/000003872323000060/0000038723-23-000060-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/38723/000003872323000060/na-20230516.htm
  HTML page:      https://secwatch.observer/filing/0000038723-23-000060

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