NICK Nicholas Financial Inc Bc

Item 1.01 Entry into a Material Definitive Agreement.

On December 6, 2022 (the “Effective Date”), Nicholas Financial, Inc., a Florida corporation (“Nicholas-Florida”), and Nicholas Data Services, Inc., a Florida corporation (“NDS” and collectively with Nicholas-Florida, the “Borrowers”), two wholly-owned subsidiaries of Nicholas Financial, Inc. (the “Company”) entered into a Second Amendment to Loan and Security Agreement among the Borrowers, Wells Fargo Bank, N.A., as agent (the “Agent”), and the lenders that are party thereto (the “Amendment”), which amends the Loan and Security Agreement dated as of November 5, 2021 among the Borrowers, the Agent, and the lenders that are party thereto (the “Credit Agreement”).

Pursuant to the Amendment, the Agent and the lenders waived an event of default under the Credit Agreement previously disclosed on Current Report on Form 8-K filed on October 27, 2022, and, as of the Effective Date, the credit facility provided under the Credit Agreement (the “Credit Facility”) will no longer accrue interest at a default rate.

The Amendment reduced the maximum amount available under the Credit Facility from $175 million to $60 million, and also reduced the availability of funds under the Credit Facility from an advance rate of between 80% and 85% of the value of eligible receivables to an advance rate of 50% of the value of eligible receivables, and changed the maturity date of the Credit Facility from November 5, 2024 to May 31, 2023. The Company incurred non-refundable overall costs associated with the restructuring in the amount of $0.3 million.