UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 1.01. Entry into a Material Definitive Agreement
Pursuant to the terms of the Business Loan Agreement, as amended, dated February 23, 2018, between Lollicup USA Inc., a California corporation, as borrower, and Hanmi Bank, as lender, Karat Packaging Inc. (the "Company") has a line of credit that had a maximum borrowing capacity of $40,000,000 secured by the Company’s assets (the “Line of Credit”). On March 3, 2025, the Company entered into an amended Line of Credit, dated February 24, 2025, to (1) extend the maturity date to March 14, 2027, (2) reduce the revolving loan facility to $20,000,000, and (3) revise the interest on any Line of Credit borrowings to an annual rate of one month term Secured Overnight Financing Rate ("SOFR") plus 2.25%, with a SOFR floor of 1.00% (the "Amendment").
The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by the Amendment, a copy of which is attached to this Current Report on Form 8-K as Exhibit 10.1, and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description | |
| 10.1 | Change In Terms Agreement, dated February 24, 2025, by and between Lollicup USA Inc. and Hanmi Bank | |
| 104 | Cover Page Interactive File (formatted as inline XBRL and contained in Exhibit 101) |
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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: March 7, 2025 | KARAT PACKAGING INC. | |
| By: | /s/ Jian Guo | |
| Jian Guo | ||
| Chief Financial Officer | ||
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