PARKS AMERICA, INC 8-K/A

What Happened
Parks! America, Inc. (filed June 30, 2026) reported that its wholly owned subsidiary, Aggieland-Parks, Inc., completed a refinancing on June 17, 2026 with Cendera Bank. The new 2026 Term Loan has a $2.33 million principal balance, a seven-year term (maturing June 1, 2033) with a 25-year amortization schedule and a balloon payment due at maturity. Aggieland-Parks also entered a promissory note rate conversion agreement with ARC Fixed Rate Provider (SouthState Bank, N.A.), converting variable interest into a fixed 6.99% rate over the loan term.

Key Details

• Principal $2.33M; 7-year term, 25-year amortization; balloon due June 1, 2033; initial monthly payment ≈ $16,561.
• Variable rate formula is CME 1-month term SOFR + 2.70% (SOFR was 3.64% on 6/17/26 → initial 6.34%); rate conversion fixes interest at 6.99%.
• Loan is secured by substantially all Aggieland-Parks assets and guaranteed by Parks! America, Inc.; Aggieland paid ≈ $14,900 in fees.
• The refinancing removed a prior $2.5M cash collateral reserve and imposes covenants requiring both borrower and guarantor maintain a trailing 12‑month Debt Service Coverage Ratio ≥ 1.20x.

Why It Matters
The refinancing extends debt maturity and removes a $2.5M cash reserve, which should improve near-term liquidity and reduce immediate refinancing risk. Converting to a fixed 6.99% rate gives predictable interest expense but is slightly higher than the initial variable rate at closing. The loan is secured and guaranteed by the parent, and the DSCR covenant (≥1.20x) and other reporting requirements could constrain financial flexibility; investors should monitor compliance with these covenants and the company’s cash flow trends.