Company: CULP
Filing Date: 2025-06-16
Form Type: 8-K
Source: 0000950170-25-086879
Chunk: 1

Company: CULP INC
Filing Date: 2025-06-16
Form: 8-K
Item: Item 1.01
Chunk 1
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ii) 85% of the net-orderly-liquidation value percentage of eligible inventory, plus

o

the least of (i) 65% of eligible in-transit inventory valued at cost based on a first-in first-out basis (net of intercompany profits), (ii) 85% of the net-orderly-liquidation value percentage of eligible in-transit inventory, and (iii) $4.0 million, plus

o

the lesser of (i) 65% of eligible raw material inventory valued at cost based on a first-in first-out basis (net of intercompany profits) and (ii) 85% of the net-orderly-liquidation value percentage of eligible raw material inventory

▪ $20.0 million; and

▪ An amount equal to 200% of eligible accounts receivable,

minus

▪ applicable reserves.

▪ Borrowings under the ABL Facility bear interest at an annual rate equal to daily simple SOFR (the secured overnight financing rate administered by the Federal Reserve Bank of New York (or its successor)) plus 175 basis points (if the average monthly

excess availability under the ABL Facility is greater than 66 2/3%), 200 basis points (if the average monthly excess availability under the ABL Facility is less than or equal to 66 2/3% and greater than 33 1/3%), or 225 basis points (if the average monthly excess availability under the ABL Facility is less than or equal to 33 1/3%), as applicable, with a fee on unutilized commitments at an annual rate of 37.5 basis points (if usage is equal to or greater than 50% of the maximum credit available under the ABL Facility) or 50 basis points (if usage is less than 50% of the maximum credit available under the ABL Facility).

▪ For purposes of calculating the ABL Facility’s springing covenant requiring that the Company’s fixed charge coverage ratio be no less than 1.10 to 1.00 during any period that (i) an event of default has occurred or (ii) excess availability under the ABL Facility falls below $4.5 million at such time, the Company may add back to the calculation of its earnings before interest, taxes, depreciation and amortization (EBITDA) its actual cash restructuring charges for any measurement period including May 2024 through April 2025 and, thereafter, any additional cash restructuring