OLD MARKET CAPITAL Corp (OMCC): debt financing — Nicholas Financial in default on loan; Wells Fargo imposes default rate interest

OLD MARKET CAPITAL Corp

Default due to EBITDA ratio covenant failure for month ending August 31, 2022.
Default rate of interest effective Aug 31, 2022; additional ~$130k interest for Q3 2022 and ~$118k/month thereafter.
Lenders reserve right to accelerate all obligations under the loan agreement.
Company is working with Wells Fargo to address default and negotiating refinancing with an alternative source.
Default driven by increased provisions for credit losses as COVID-19 assistance subsided.

item 2.04

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

OLD MARKET CAPITAL Corp reported a default on credit facility with Wells Fargo Bank, N.A. at default rate of interest.

Instrument: credit facility
Counterparty: Wells Fargo Bank, N.A.
Rate: default rate of interest
Event: default

Exact text from the filing

the lenders expressly reserve all rights and remedies available under the Loan Agreement. Among those rights and remedies is the ability of the lenders to accelerate all of Nicholas’ obligations under the loan.

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Source: SEC EDGAR

accession 0000950170-22-020230

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