XCel Brands, Inc. 8-K

What Happened
XCel Brands, Inc. (XELB) announced in an 8-K that it entered into a Fifth Amendment to its Loan and Security Agreement with its lenders and FEAC Agent, LLC as administrative agent. Under the amendment the company committed to a $500,000 prepayment of Term Loan A (to be paid from the Blocked Account if funds are sufficient), reduced the required liquid-asset covenant, and extended the transaction closing date.

Key Details

• Committed prepayment: $500,000 applied to Term Loan A (from the Blocked Account if sufficient funds).
• Liquid-asset covenant: requirement reduced to $500,000 at all times prior to repayment in full of the “First Out Obligations.”
• Closing date extended: transaction closing date moved to March 6, 2026.
• Parties: amendment among XCel Brands, the other Credit Parties, the lenders under the Dec 12, 2024 Loan and Security Agreement, and FEAC Agent, LLC as Administrative Agent.

Why It Matters
This amendment directly changes XCel’s outstanding debt terms and liquidity requirements. The $500,000 prepayment reduces outstanding principal on Term Loan A (subject to available blocked funds), and the lower liquid-asset covenant (to $500,000) temporarily lowers the minimum cash or liquid assets the company must maintain while the First Out Obligations remain outstanding. Investors should note these are contractual changes to credit terms that affect the company’s near-term cash use and covenant obligations.