secwatch.observer — SEC 8-K summary
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Issuer:     Direct Digital Holdings, Inc. (DRCT)
CIK:        0001880613
Form:       8-K
Filed at:   2025-01-03T23:59:59+00:00
Accession:  0001628280-25-000266
Event type: debt
Sentiment:  negative
Materiality: 0.75
Item codes: 1.01, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

DRCT amends credit agreements, waives defaults, obtains $6M term loan, sells shares
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- Prepaid $5M on EWB revolver to reduce commitment to $5M; new Lafayette Square term loan of $6M.
- Covenants amended: minimum EBITDA removed, replaced with $750k unrestricted cash requirement.
- Existing defaults under EBITDA covenants waived under both East West and Lafayette Square agreements.
- Sold 800k shares of Class A common stock to New Circle for ~$1.64M total cash consideration.
- Weekly cash flow forecasts required under both amended credit agreements.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1880613/000162828025000266/0001628280-25-000266-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1880613/000162828025000266/drct-20241227.htm
  HTML page:      https://secwatch.observer/filing/0001628280-25-000266

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