Company: CULP
Filing Date: 2025-06-16
Form Type: 8-K
Source: 0000950170-25-086879
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Company: CULP INC
Filing Date: 2025-06-16
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement.

On June 12, 2025, Culp, Inc., as borrower (the “ Company”), and Read Window Products, LLC and Culp Fabrics Global, LLC, each a wholly owned domestic subsidiary of the Company, as guarantors (collectively, the “ Guarantors”), entered into a Third Amendment to Second Amended and Restated Credit Agreement (the “ Third Amendment”), by and among the Company, the Guarantors and Wells Fargo Bank, National Association, as lender (the “ Lender”). The Third Amendment amends the Second Amended and Restated Credit Agreement dated as of January 19, 2023 (as amended, restated, supplemented, or otherwise modified from time, the “ Credit Agreement”), which was filed as Exhibit 10.1 to the Current Report on Form 8-K filed by the Company on January 23, 2023, and which established 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. The Credit Agreement amended, restated and superseded, and served as a replacement for, the Amended and Restated Credit Agreement, dated as of June 24, 2022, as amended, by and between the Company and the Lender.

Pursuant to the Third Amendment, the term of the ABL Facility was extended for three years and now matures on June 12, 2028. In addition, the Third Amendment amends the ABL Facility as follows:

▪ The ABL Facility may be used for revolving credit loans and letters of credit up to a maximum principal amount of $30.0 million, which may be increased upon mutual agreement by up to $10.0 million via an accordion feature.

▪ The Company may issue letters of credit under a sub-facility within the ABL Facility in an aggregate amount not to exceed $2 million.

▪ The amount available under the ABL Facility is limited by a borrowing base consisting of certain eligible accounts receivable and inventory, reduced by specified reserves, as follows:

o

85% of eligible accounts receivable, plus

• the least of:

▪ the sum of:

o

lesser of (i) 65% of eligible inventory valued at cost based on a first-in first-out basis (net of intercompany profits) and (