secwatch.observer — SEC 8-K summary
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Issuer:     Direct Digital Holdings, Inc. (DRCT)
CIK:        0001880613
Form:       8-K
Filed at:   2026-01-30T23:59:59+00:00
Accession:  0001880613-26-000011
Event type: debt
Sentiment:  negative
Materiality: 0.75
Item codes: 1.01, 2.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

DRCT enters loan amendment, waives multiple defaults, adds $4M fee to principal
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- Outstanding term loans $10.3M; $4M amendment fee added to principal, bears interest at Term Loan Rate + 2%.
- Existing defaults waived: missed minimum cash, EBITDA covenants, non-payment of interest/fees, missing independent director.
- Financial covenants modified: removed minimum quarterly EBITDA and sell-side revenue covenant for Q4 2025.
- No principal payments due Q1/Q2 2026; payments resume Q3 2026, maturity September 30, 2026.
- Preferred equity conversion terms amended; Lafayette Square holds $27.1M Series A preferred plus $1.2M accrued dividends.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1880613/000188061326000011/0001880613-26-000011-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1880613/000188061326000011/drct-20260127.htm
  HTML page:      https://secwatch.observer/filing/0001880613-26-000011

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