secwatch.observer — SEC 8-K summary
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Issuer:     RCI HOSPITALITY HOLDINGS, INC. (RICK)
CIK:        0000935419
Form:       8-K
Filed at:   2024-05-03T23:59:59+00:00
Accession:  0001628280-24-020288
Event type: debt
Sentiment:  neutral
Materiality: 0.50
Item codes: 1.01, 2.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

RCI Hospitality subsidiary enters $20M term loan with Centennial Bank at 8.25% fixed for 5 years
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- $20 million term loan, 10-year maturity; interest fixed at 8.25% for first 5 years then adjusts to UST+362 bps (floor 6.50%).
- Monthly payments of $170,407.64 based on 20-year amortization; prepayment penalty 5% to 2% over first 8 years.
- Loan secured by 9 real estate properties; guaranteed by parent RCI Hospitality Holdings and CEO Eric Langan.
- Covenants require minimum $25M tangible net worth; dividends capped at $0.04/quarter unless debt service coverage <1.40x for 3 quarters (then suspended).
- Proceeds used for working capital; Centennial Bank receives right of first refusal on future real estate financings of RCI Holdings.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/935419/000162828024020288/0001628280-24-020288-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/935419/000162828024020288/rick-20240430.htm
  HTML page:      https://secwatch.observer/filing/0001628280-24-020288

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