Company: HFFG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001680873-25-000074
Chunk: 15

Company: HF Foods Group Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 15
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 for an initial notional amount of $2.7 million in conjunction with a newly contracted mortgage term loan of corresponding amount. On December 19, 2021, the Company entered into the Second Amendment to Loan Agreement, which pegged the mortgage term loan to Term 

11

SOFR + 2.5%. The BOA IRS was modified accordingly to fix the SOFR based loan to approximately 4.50%. The term loan and corresponding BOA IRS contract mature in December 2029.On March 15, 2023, the Company entered into an amortizing IRS contract with JPMorgan Chase for an initial notional amount of $120.0 million, effective from March 1, 2023 and expiring in March 2028, as a means to partially hedge its existing floating rate loans exposure. Pursuant to the agreement, the Company will pay the swap counterparty a fixed rate of 4.11% in exchange for floating payments based on Term SOFR.The Company evaluated the aforementioned IRS contracts currently in place and did not designate those as cash flow hedges.  Hence, the fair value changes of these IRS contracts are accounted for and recognized as a change in fair value of interest rate swap contracts in the condensed consolidated statements of operations and comprehensive loss.

As of September 30, 2025, the Company determined that the fair values of the IRS contracts were $0.3 million in an asset position and $1.7 million in a liability position. As of December 31, 2024, the fair values of the IRS contracts were $0.5 million in an asset position and none in a liability position. The Company includes these in other long-term assets and other long-term liabilities, respectively, on the condensed consolidated balance sheets. 

Note 8 - Long-Term DebtLong-term debt at September 30, 2025 and December 31, 2024 is summarized as follows:($ in thousands)Bank NameMaturityInterest Rate at September 30, 2025September 30, 2025December 31, 2024Bank of America (a)October 2026 - December 20294.34% - 6.97%$2,023 $2,176 East West Bank (b)August 2027 - September 20296.54% - 7.75%5,377 5,518 JPMorgan Chase (c)January 20306.26%97,461