World Acceptance eases fixed charge covenant

World Acceptance Corporation entered into a consent and limited modification with Bank of Montreal and its lenders to temporarily ease a key debt covenant under its Revolving Credit Agreement.

Rhea-AI Filing Summary

World Acceptance Corporation entered into a consent and limited modification with Bank of Montreal and its lenders to temporarily ease a key debt covenant under its Revolving Credit Agreement. The agreement governs a financial test measuring the ratio of Net Income Available for Fixed Charges to Fixed Charges.

The minimum ratio, normally 2.25 to 1.0 each quarter, will be reduced to 2.20 to 1.0 for the quarter ending March 31, 2026, 2.10 to 1.0 for June 30, 2026, and 2.15 to 1.0 for September 30, 2026. Starting with the quarter ending December 31, 2026, the covenant level returns to 2.25 to 1.0, and all other terms of the Credit Agreement remain unchanged.

Insights

Credit & capital structure analyst

WRLD obtained temporary relief on a key loan covenant.

World Acceptance Corporation negotiated a short-term adjustment to its fixed charge coverage covenant in its Revolving Credit Agreement with Bank of Montreal and the Required Lenders. The minimum coverage ratio steps down modestly for three 2026 quarters before reverting to its original level.

This type of modification can indicate the company expects tighter coverage during the affected periods, and prefers flexibility rather than risking a covenant breach. The change is time-limited and does not alter other terms of the facility, which continue in full force and effect.

The specific schedule lowers the required ratio to 2.20x for the quarter ending March 31, 2026, 2.10x for June 30, 2026, and 2.15x for September 30, 2026, with a return to 2.25x from the quarter ending December 31, 2026 onward. Future disclosures in company filings may provide more context on operating performance against these thresholds.

8-K Event Classification

2 items: 1.01, 9.01

2 items

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, or exhibit attachments filed with this report.

Key Figures

Original fixed charge coverage covenant: 2.25 to 1.0 Modified covenant March 31, 2026: 2.20 to 1.0 Modified covenant June 30, 2026: 2.10 to 1.0 +2 more

5 metrics

Original fixed charge coverage covenant 2.25 to 1.0 Minimum ratio required each fiscal quarter under Credit Agreement

Modified covenant March 31, 2026 2.20 to 1.0 Minimum ratio for quarter ending March 31, 2026

Modified covenant June 30, 2026 2.10 to 1.0 Minimum ratio for quarter ending June 30, 2026

Modified covenant September 30, 2026 2.15 to 1.0 Minimum ratio for quarter ending September 30, 2026

Reversion of covenant 2.25 to 1.0 Reapplies from quarter ending December 31, 2026 onward

Key Terms

Net Income Available for Fixed Charges, Fixed Charges, Revolving Credit Agreement, Financial Covenant, +1 more

5 terms

Net Income Available for Fixed Charges financial

"required to maintain a ratio of Net Income Available for Fixed Charges to Fixed Charges"

Fixed Charges financial

"ratio of Net Income Available for Fixed Charges to Fixed Charges (the "Financial Covenant")"

Fixed charges are regular, contractual payments a company must make regardless of how well its business is doing, such as interest on debt, lease payments, and certain insurance or rental obligations. They matter to investors because these unavoidable payments reduce the cash available for reinvestment, dividends, or absorbing downturns; like a household with a fixed mortgage and car payment, higher fixed charges make a company less flexible and increase financial risk.

Revolving Credit Agreement financial

"Revolving Credit Agreement dated as of July 22, 2025"

A revolving credit agreement is a flexible loan arrangement where a borrower can borrow, repay, and borrow again up to a set limit, similar to a credit card. It matters because it gives businesses or individuals quick access to funds whenever needed, helping manage cash flow and cover expenses without applying for a new loan each time.

Financial Covenant financial

"The Modification provides for a limited, temporary modification of the Financial Covenant"

A financial covenant is a clause in a loan or credit agreement that requires a borrower to keep specific financial measures—such as cash levels, profit, or debt ratios—within agreed limits. Investors watch these rules because breaking them can let lenders demand immediate repayment, impose penalties, or restrict a company’s ability to pay dividends or take on new projects; think of it as house rules that, if violated, can force sudden, costly changes.

Administrative Agent and Collateral Agent financial

"Bank of Montreal ("BMO"), as Administrative Agent and Collateral Agent"

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What covenant did World Acceptance Corporation (WRLD) modify in this 8-K?

World Acceptance Corporation modified its financial covenant requiring a minimum ratio of Net Income Available for Fixed Charges to Fixed Charges. The ratio normally must be at least 2.25 to 1.0 each fiscal quarter under its Revolving Credit Agreement with Bank of Montreal and the Required Lenders.

How is WRLD’s fixed charge coverage covenant changing for 2026?

The covenant minimum ratio is reduced to 2.20 to 1.0 for the quarter ending March 31, 2026, 2.10 to 1.0 for June 30, 2026, and 2.15 to 1.0 for September 30, 2026. These step-downs provide temporary relief from the original 2.25 to 1.0 requirement.

When does World Acceptance’s fixed charge coverage covenant revert to its original level?

The minimum ratio reverts to 2.25 to 1.0 for the fiscal quarter ending December 31, 2026, and remains at that level for all later quarters. Only the three quarters in 2026 ending March 31, June 30, and September 30 are covered by the temporary modification.

Who are the parties to WRLD’s covenant modification agreement?

The modification is among World Acceptance Corporation, Bank of Montreal as Administrative Agent and Collateral Agent, and the Required Lenders under the existing Revolving Credit Agreement dated July 22, 2025. These parties consented to the limited, time-bound adjustment of the financial covenant levels.

Does the covenant modification change other terms of WRLD’s Revolving Credit Agreement?

No, other terms of the Revolving Credit Agreement remain in full force and effect. The modification is limited to temporarily adjusting the required ratio of Net Income Available for Fixed Charges to Fixed Charges for specified 2026 quarters; all other provisions continue unchanged.

Where can investors find the full text of WRLD’s covenant modification?

The complete Consent and Limited Modification to Fixed Charge Ratio is filed as Exhibit 10.1 to the report. The 8-K explains that its brief description is qualified in its entirety by that exhibit, which is incorporated by reference for full contractual details.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 05/26/2026 - 04:35 PM Learn about SEC filing dates

May 22, 2026False000010838500001083852022-05-032022-05-03

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

Date of Report (Date of earliest event reported) May 22, 2026

Commission File Number:  000-19599

WORLD ACCEPTANCE CORPORATION

(Exact name of registrant as specified in its charter.)

South Carolina						57-0425114
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

104 S Main Street
Greenville,			South Carolina			29601
(Address of principal executive offices)
(Zip Code)

(864)			298-9800
(registrant's telephone number, including area code)

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

Title of each class			Trading Symbol			Name of each exchange on which registered
Common Stock, no par value			WRLD			The NASDAQ Stock Market LLC
						(NASDAQ Global Select Market)

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 (see General Instruction A.2. below):

☐           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))

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 check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.									☐

Item 1.01. Entry into a Material Definitive Agreement

Consent and Limited Modification to Fixed Charge Coverage Ratio Covenant

On May 22, 2026, World Acceptance Corporation (the "Company") entered into a Consent and Limited Modification to Fixed Charge Ratio (the "Modification") with Bank of Montreal ("BMO"), as Administrative Agent and Collateral Agent, and the Required Lenders party to the Revolving Credit Agreement dated as of July 22, 2025 (as amended or otherwise modified from time to time, the "Credit Agreement"), by and among the Company, the lenders from time to time party thereto, and BMO, as Administrative Agent and Collateral Agent.

Pursuant to Section 8.7(b) of the Credit Agreement, the Company and its Restricted Subsidiaries are required to maintain a ratio of Net Income Available for Fixed Charges to Fixed Charges (the "Financial Covenant") of not less than 2.25 to 1.0 for each fiscal quarter. The Modification provides for a limited, temporary modification of the Financial Covenant as follows:

i.2.20 to 1.0 as of the fiscal quarter ending March 31, 2026;

ii.2.10 to 1.0 as of the fiscal quarter ending June 30, 2026; and

iii.2.15 to 1.0 as of the fiscal quarter ending September 30, 2026.

Commencing with the fiscal quarter ending December 31, 2026, and for all fiscal quarters thereafter, the Financial Covenant shall revert to its original level of not less than 2.25 to 1.0, without regard to the limited modification set forth in the Modification.

Except as expressly modified by the Modification, the Credit Agreement remains in full force and effect in accordance with its current terms.

The foregoing description of the Modification is only a summary and is qualified in its entirety by reference to the full text of the Modification, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibit Number			Exhibit Description
10.1			Consent and Limited Modification to Fixed Charge Ratio, dated as of May 22, 2026, among World Acceptance Corporation, Bank of Montreal, as Administrative Agent and Collateral Agent, and the Required Lenders party thereto
10.4			Cover Page Interactive Data File (embedded within the Inline XBRL document).

1

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.

			WORLD ACCEPTANCE CORPORATION
						By: /s/ John L. Calmes, Jr.
						John L. Calmes, Jr.
						Executive Vice President and Chief Financial and Strategy Officer
						Date:			May 26, 2026

2

Filing Exhibits & Attachments

4 documents

Agreements & Contracts

• EX-10.1 EX-10.1 16.7 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 1.8 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 21.4 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 12.3 KB