PARKS AMERICA, INC. Enters $1.3M Term Loan, Replaces Prior Debt

What Happened
Parks! America, Inc. (through its wholly owned subsidiary Wild Animal Safari, Inc.) announced it entered into a $1.30 million term loan credit agreement with Cendera Bank (agreement dated August 26, 2026; entered September 3, 2026) to pay off the prior Synovus Bank loan. The new 2026 Term Loan matures September 1, 2033 (seven‑year term with a 25‑year amortization schedule and a balloon payment due at maturity). Wild Animal Safari also entered a Rate Conversion Agreement (September 8, 2026) that converts the variable SOFR‑based rate into a fixed rate of 7.35% for the loan term.

Key Details

• Loan principal: $1.30 million; used to repay the Term Loan Credit Agreement dated June 18, 2021 with Synovus Bank.
• Interest: variable rate = CME 1‑month term SOFR + 2.70% (SOFR was 3.67% on Aug 26, 2026 → initial 6.37%); converted to a fixed 7.35% via Rate Conversion Agreement.
• Term and payments: 7‑year term to Sept 1, 2033, 25‑year amortization, balloon payment at maturity; estimated initial monthly payment ~ $9,570.
• Security and guarantee: loan secured by substantially all assets of Wild Animal Safari; guaranteed by parent Parks! America, Inc.
• Covenants and costs: borrower and guarantor must each maintain a minimum Debt Service Coverage Ratio of 1.20x (trailing 12 months); Wild Animal paid about $39,000 in fees and expenses.
• Standard events of default included (non‑payment, covenant breaches, insolvency, cross‑default, impairment of collateral).

Why It Matters
This filing shows Parks! America refinanced its prior bank debt with a new long‑term loan that creates a secured, parent‑guaranteed financial obligation. The fixed 7.35% rate stabilizes interest expense compared with a variable SOFR loan, but the company now carries a long‑term repayment schedule with a sizable balloon payment at maturity and a covenant requiring a minimum debt service coverage ratio. Investors should note the monthly cash outflow estimate (~$9,570), the ~$39,000 in upfront fees, and the covenant that could limit flexibility if operating cash flow weakens.