secwatch.observer — SEC 8-K summary
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Issuer:     CULP INC (CULP)
CIK:        0000723603
Form:       8-K
Filed at:   2023-01-23T23:59:59+00:00
Accession:  0000950170-23-001003
Event type: debt
Sentiment:  neutral
Materiality: 0.50
Item codes: 1.01, 2.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/723603/000095017023001003/0000950170-23-001003-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/723603/000095017023001003/culp-20230119.htm
  HTML page:      https://secwatch.observer/filing/0000950170-23-001003

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