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Parks America (OTCQX: PRKA) fixes 6.99% rate on $2.33M Aggieland refinancing

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Parks! America, Inc. reported that its subsidiary Aggieland-Parks, Inc. completed a refinancing of its term loan with Cendera Bank. The new 2026 Term Loan has a principal balance of $2.33 million, a seven-year term with 25-year amortization, and a balloon payment due on June 1, 2033.

The interest rate is based on 1-month CME SOFR plus 2.70%, which produced an initial rate of 6.34% as of June 17, 2026, and an estimated monthly payment of $16,561. Aggieland-Parks simultaneously entered into an interest rate swap designated as a cash flow hedge, effectively converting the variable rate into a fixed rate of 6.99% over the loan term.

The refinancing eliminated a prior $2.5 million cash collateral reserve requirement established with Cendera Bank and is secured by substantially all Aggieland-Parks assets, with a guaranty from Parks! America, Inc. The agreements impose a minimum Debt Service Coverage Ratio of 1.20 to 1.00 on a trailing twelve-month basis, along with standard reporting covenants and customary events of default.

Positive

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Negative

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Insights

Parks! America refinances key subsidiary debt, fixes interest costs, and removes a large cash reserve requirement.

The Aggieland-Parks unit now carries a $2.33 million term loan maturing on June 1, 2033, with 25-year amortization and a balloon payment. Interest is tied to 1‑month CME SOFR plus 2.70%, giving an initial rate of 6.34% before hedging.

An interest rate swap with ARC Fixed Rate Provider is designated as a cash flow hedge and effectively fixes the loan’s rate at 6.99% for the term, trading rate flexibility for payment certainty. Aggieland-Parks incurred about $14,900 of fees and granted a security interest in substantially all of its assets, while Parks! America provided a guaranty.

The refinancing removes a prior $2.5 million cash collateral reserve requirement that had been established with Cendera Bank, which may improve liquidity at the group level. The minimum trailing twelve‑month Debt Service Coverage Ratio of 1.20 to 1.00 for both the parent guarantor and the borrower adds an ongoing performance constraint but is typical for asset-backed term debt.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Term loan principal $2.33 million Principal balance of 2026 Term Loan
Loan maturity June 1, 2033 Balloon payment due date
Estimated monthly payment $16,561 Initial monthly payment on 2026 Term Loan
Initial interest rate 6.34% CME 1‑month SOFR 3.64% + 2.70% margin
Fixed swap rate 6.99% Effective fixed rate over loan term via swap
SOFR at closing 3.64% CME 1‑month term SOFR as of June 17, 2026
Fees and expenses $14,900 Approximate costs paid for 2026 Term Loan
Removed cash reserve $2.5 million Cash collateral reserve requirement eliminated
Secured Overnight Financing Rate financial
"The CME 1-month term SOFR was 3.64% as of June 17, 2026"
A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.
cash flow hedge financial
"designated as a cash flow hedge against the variability in future interest rate payments"
A cash flow hedge is an accounting label for a contract or arrangement used to offset expected future swings in a company’s cash payments or receipts — for example from variable-rate interest, foreign currency sales, or forecasted purchases. It matters to investors because it aims to smooth future cash and earnings volatility: gains or losses on the hedge are held out of current profit and reported separately until the underlying transaction affects results, much like buying insurance to steady future bills.
Debt Service Coverage Ratio financial
"maintain a minimum Debt Service Coverage Ratio of at least 1.20 to 1.00"
Debt service coverage ratio measures how many times a company's available cash flow can pay its scheduled debt payments (interest plus principal). Think of it like checking how many months of take-home pay it would take to cover your mortgage and loan bills; a higher number means a bigger cushion against missed payments. Investors use it to gauge credit risk, the likelihood of default, and whether a company can afford dividends or new borrowing.
balloon payment financial
"with a 25-year amortization, and a ballon payment of the outstanding principal balance due"
A balloon payment is a large, single lump-sum due at the end of a loan after a schedule of smaller regular payments; think of it as making modest monthly payments like rent but owing one big bill at the finish. For investors, it matters because the borrower's ability to make or refinance that final payment affects credit risk, cash flow timing and the value of debt or equity tied to that borrower—unexpected shortfalls can cause losses or force restructuring.
events of default financial
"includes customary events of default including non-payment of principal, interest or fees"
Events of default are specific breaches or failures listed in a loan, bond, or credit agreement that give lenders the right to act, such as demanding immediate repayment, raising interest rates, or taking secured assets. They matter to investors because triggering one is like setting off a financial alarm: it raises the chance of foreclosure, restructuring, or bankruptcy and can sharply reduce the value of a company’s stock or bonds and increase borrowing costs.
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false 0001297937 0001297937 2026-06-17 2026-06-17 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

June 17, 2026   000-51254
Date of Report (Date of earliest event reported)   Commission File Number

PARKS! AMERICA, INC.

(Exact name of registrant as specified in its charter)

 

Nevada   91-0626756

(State or other jurisdiction of

incorporation or organization)

  

(I.R.S. Employer

Identification Number)

 

1300 Oak Grove Road

Pine Mountain, GA 31822

(Address of Principal Executive Offices) (Zip Code)

 

(706) 663-8744

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(g) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock   PRKA   OTCQX

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by a check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

On June 17, 2026, Aggieland-Parks, Inc., a wholly owned subsidiary of Parks! America, Inc., completed a refinancing transaction (“2026 Refinancing”) with Cendera Bank. The 2026 Refinancing is the First Modification of the Term Loan Agreement dated September 30, 2024 between Aggieland-Parks, Inc. and Cendera Bank, N.A., predecessor to Cendera Bank (the “2026 Term Loan”).

 

The 2026 Term Loan has a principal balance of $2.33 million and will mature on June 1, 2033. The 2026 Term Loan has a term of seven years, with a 25-year amortization, and a ballon payment of the outstanding principal balance due on June 1, 2033. The initial monthly loan payment is estimated to be $16,561.

 

The applicable interest rate of the 2026 Term Loan is based on an adjusted rate equal to the Chicago Mercantile Exchange (“CME”) 1-month term Secured Overnight Financing Rate (“SOFR”) plus 2.70%. The CME 1-month term SOFR was 3.64% as of June 17, 2026 providing an initial interest rate of 6.34%. Concurrently, Aggieland-Parks, Inc. entered into a Promissory Note Rate Conversion Agreement with third-party provider, SouthState Bank, N.A., doing business as ARC Fixed Rate Provider, to contract an interest rate swap that will be designated as a cash flow hedge against the variability in future interest rate payments due on the 2026 Term Loan. The Promissory Note Rate Conversion Agreement is coterminous with the 2026 Term Loan and effectively converts the variable adjusted rate interest payments into a fixed rate obligation, resulting in a fixed interest rate of 6.99% over the term of the loan.

 

Aggieland-Parks, Inc. paid approximately $14,900 in fees and expenses in connection with the 2026 Term Loan.

 

The 2026 Term Loan is secured by substantially all the Aggieland-Parks, Inc assets. Pursuant the Guaranty Agreement, the 2026 Term Loan is guaranteed by the parent company, Parks! America, Inc. The 2026 Refinancing removes the requirement of the cash collateral reserve of $2.5 million established by Focus Compounding Fund, LC. with Cendera Bank included in the original Term Loan Agreement dated September 30, 2024.

 

The Guaranty Agreement and First Modification of Loan Agreement are subject to certain financial covenants including that, Parks! America, Inc., as guarantor, and Aggieland Parks, Inc., as borrower, independently maintain a minimum Debt Service Coverage Ratio of at least 1.20 to 1.00 on a trailing twelve-month basis. Both the Guaranty Agreement and First Modification of Loan Agreement contain certain affirmative covenants, including, among other things, reporting requirements such as delivery of financial statements, federal or state income tax filings and such other reports.

 

The 2026 Term Loan includes customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross default to certain other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests.

 

The foregoing description of the 2026 Term Loan is only a summary of the material terms thereof, does not purport to be complete and is qualified in its entirety by reference to the Amended and Restated Promissory Note, Exhibit A to Promissory Note Rate Conversion Agreement. Guaranty Agreement and the Annex 1 to First Modification of Loan Documents, filed as Exhibits 10.1, 10.2, 10.3 and 10.4, respectively, to this Current Report on Form 8-K, which are incorporated herein by reference.

 

Item 9.01Financial Statements and Exhibits

 

(d) Exhibits.

 

Exhibit No.   Description of Exhibit 
10.1   Amended and Restated Promissory Note, dated June 17, 2026, between Aggieland-Parks, Inc. and Cendera Bank.
     
10.2   Exhibit A to Promissory Note Rate Conversion Agreement, dated June 17, 2026, between ARC Fixed Rate Provider and Aggieland Parks, Inc.
     
10.3   Guaranty (Payment and Performance) Agreement, dated June 17, 2026, between Parks! America, Inc. and Cendera Bank. 
     
10.4   Annex I to First Modification of Loan Agreement between Aggieland-Parks, Inc. and Cendera Bank.
     
104   Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

2

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: June 24, 2026

 

  PARKS! AMERICA, INC.
     
  By: /s/ Rebecca S. McGraw
  Name: Rebecca S. McGraw
  Title: Chief Financial Officer

 

3

 

Source: View Original Filing on SEC EDGAR

FAQ

What refinancing did Parks! America (PRKA) complete for Aggieland-Parks?

Aggieland-Parks, a Parks! America subsidiary, refinanced its term loan with Cendera Bank into a new 2026 Term Loan of $2.33 million. The loan runs seven years, amortized over 25 years, with a balloon payment due June 1, 2033 and customary covenants.

What are the key interest terms of Parks! America’s new $2.33 million loan?

The 2026 Term Loan interest rate is based on 1‑month CME SOFR plus 2.70%, giving an initial rate of 6.34% as of June 17, 2026. An associated interest rate swap effectively converts this into a fixed 6.99% rate over the life of the loan.

How does the interest rate swap affect Parks! America’s Aggieland loan?

Aggieland-Parks entered a Promissory Note Rate Conversion Agreement with ARC Fixed Rate Provider, designating an interest rate swap as a cash flow hedge. This swap converts future variable-rate payments on the 2026 Term Loan into a fixed 6.99% interest obligation over the same term.

What collateral and guarantees support Parks! America’s 2026 Term Loan?

The 2026 Term Loan is secured by substantially all Aggieland-Parks, Inc. assets. Additionally, Parks! America, Inc. guarantees payment and performance under a Guaranty Agreement with Cendera Bank, increasing lender protection while tying the parent more closely to subsidiary debt obligations.

What financial covenants apply to Parks! America under the new loan agreements?

Both Parks! America, as guarantor, and Aggieland-Parks, as borrower, must each maintain a minimum Debt Service Coverage Ratio of 1.20 to 1.00 on a trailing twelve‑month basis. The agreements also include reporting requirements and customary events of default such as non‑payment or covenant breaches.

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