PRKA Parks America Inc (PK)

Item 1.01 Entry into a Material Definitive Agreement  

On July 11, 2018, Parks America, Inc., through its wholly-owned subsidiary Wild Animal Safari Inc. (collectively referred to herein as the “Company”) completed a refinancing transaction (the “Refinancing”) with Synovus Bank (the “Lender”). The Refinancing consists of a term loan in the original principal amount of $1,600,000.00 (the “Term Loan”) and a line of credit of up to $350,000.00 (the “LOC”). The Term Loan bears interest at a rate of 5.0% per annum and is payable in monthly payments of $22,671.71, based on a seven (7) year amortization period. The Term Loan has a maturity date of June 11, 2021, with an option to renew for an additional 49 month term. The LOC bears interest at a rate of 4.75% and interest only payments are due monthly. The LOC matures on July 11, 2021 with an option to renew for an additional three-year term. Both the Term Loan and the LOC are secured by a security deed on the assets of the Company’s Wild Animal Safari theme park located in Pine Mountain, Georgia. The Company used the proceeds of the Term Loan to refinance its existing SBA loan. If necessary, the Company will utilize the LOC to fund seasonal working capital needs. The Company paid a total of $2,100 in bank fees in connection with the Refinancing.

The foregoing description of the Refinancing is a summary only, does not purport to be complete and is qualified in its entirety by reference to the full text of the Term Sheet, the Term Loan Promissory Note and Security Agreement, and the LOC Promissory Note and Security Agreement, which are filed as Exhibits 10.1, 10.2, and 10.3 respectively, to this Current Report on Form 8-K and are incorporated herein by reference.