---
schema_version: "secwatch.filing_event.v1"
accession: "0000950170-23-001003"
form_type: "8-K"
ticker: "CULP"
cik: "0000723603"
company_name: "CULP INC"
filed_at: "2023-01-23T23:59:59+00:00"
generated_at: "2026-06-20T12:05:28.298500+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.5
calibrated_materiality_score: 0.5
confidence: "high"
source: SEC EDGAR
---

# Culp enters new $35M asset-based credit facility with Wells Fargo, matures Jan 2026

## Summary
- New ABL facility replaces existing credit agreement; no outstanding borrowings, $275k letter of credit outstanding.
- Maximum principal $35M; borrowing base 85% of eligible receivables and 65% of eligible inventory (capped).
- Interest: daily simple SOFR + 1.50% or 1.75% based on excess availability; unused commitment fee 0.375%.
- Springing financial covenant: fixed charge coverage ratio ≥1.10x triggers when availability <$5.25M or default.
- Maturity January 19, 2026; cash dominion events if availability <$7M or an event of default occurs.

## SEC filing metadata
- accession: 0000950170-23-001003
- form_type: 8-K
- ticker: CULP
- cik: 0000723603
- company_name: CULP INC
- filed_at: 2023-01-23T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.5
- calibrated_materiality_score: 0.5
- confidence: high
- sec_items: 1.01, 2.03, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/723603/000095017023001003/0000950170-23-001003-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/723603/000095017023001003/culp-20230119.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0000950170-23-001003
- JSON: https://secwatch.observer/filing/0000950170-23-001003.json
- Plain text: https://secwatch.observer/filing/0000950170-23-001003.txt

## Key facts
- Debt Financings
  CULP INC incurred credit facility of $35.0 million with Wells Fargo Bank, National Association at daily simple SOFR plus 150 basis points maturing January 19, 2026.
  - Instrument: credit facility
  - Principal: $35.0 million
  - Counterparty: Wells Fargo Bank, National Association
  - Rate: daily simple SOFR plus 150 basis points
  - Maturity: January 19, 2026
  - Event: incurrence
  source text: provided in the Existing Agreement. The ABL Facility may be used for revolving credit loans and letters of credit from time to time up to a maximum principal amount of $35.0 million, subject to the limitations described below. Like the Existing Agreement, the ABL Facility contains a sub-facility that allows the Company to issue letters of credit in an
  evidence_url: https://www.sec.gov/Archives/edgar/data/723603/000095017023001003/0000950170-23-001003-index.htm
- Material Agreements
  CULP INC entered into Second Amended and Restated Credit Agreement with Wells Fargo Bank, National Association valued at $35.0 million asset-based revolving credit facility, maturing January 19, 2026, with interest at dai (effective 2023-01-19).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: Wells Fargo Bank, National Association
  - Value: $35.0 million asset-based revolving credit facility, maturing January 19, 2026, with interest at dai
  - Effective: 2023-01-19
  source text: On January 19, 2023, Culp, Inc., as borrower (the “Company”), and Read Window Products, LLC, a wholly owned domestic subsidiary of the Company, as guarantor (the “Guarantor”), entered into a Second Amended and Restated Credit Agreement (the “ABL Credit Agreement”), by and among the Company, the Guarantor and Wells Fargo Bank, National Association, as lender (the “Lender”), to establish an asset-based revolving credit facility (the “ABL Facility”), the proceeds of which may be used to pay fees and expenses related to the ABL Facility and to provide funding for ongoing working capital and general corporate purposes.
  evidence_url: https://www.sec.gov/Archives/edgar/data/723603/000095017023001003/0000950170-23-001003-index.htm

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