On November 30, 2023, Bridgford Foods Corporation entered into a fifth amendment to the credit agreement with Wells Fargo Bank, N.A. dated March 1, 2018, as amended, and also executed a revolving line of credit note pursuant to the amendment. The revolving line of credit note replaces the existing note that expired by its terms in August 2023. Under the terms of this amendment and the revolving line of credit note, the Company may borrow up to $7,500,000 from time to time up to November 30, 2024, at an interest rate equal to (a) the daily simple secured overnight financing rate plus 2.0%, or if unavailable, (b) the prime rate, in each case as determined by the bank. The line of credit has an unused commitment fee of 0.35% of the available loan amount, payable on a quarterly basis. Amounts may be repaid and reborrowed during the term of the note. Accrued interest is payable on the first day of each month and the outstanding principal balance and remaining interest are due and payable on November 30, 2024. The line of credit contains various covenants, the more
significant of which requires the Company to maintain a ratio of total liabilities to tangible net worth notgreater than 2.00 to 1.00, a minimum quick ratio not less than 1.25 to 1.00, and a fixed charge coverage ratio not less than 1.25 to 1.00, in each instance measured as of the end of a fiscal quarter.