Item 1.01 Entry into a Material Definitive Agreement.

On May 17, 2022, Art's-Way Manufacturing Co., Inc. (the "Company") entered into a credit facility (the "Credit Facility") with Bank Midwest, consisting of a $550,000 revolving line of credit (the "Line of Credit") and a $350,000 term loan (the "Term Loan"), each of which are governed by Promissory Notes executed and delivered by the Company on such date (collectively, the "Notes").

The maturity date of the Line of Credit is November 30, 2022. The outstanding principal and accrued but unpaid interest is due on the maturity date, and monthly interest-only payments are required. The Term Loan matures on May 15, 2027 and the Company is required to make monthly payments of principal and interest, including 59 payments of $2,971.50 and one final payment of $269,516.69. Interest on the Line of Credit and Term Loan accrues at a floating rate per annum equal to 2.000% above the Wall Street Journal Prime Rate published from time to time in the money rates section of the Wall Street Journal. The interest rate floor is set at 5.000% per annum and the current interest rate is 6.000% per annum. There is no prepayment penalty under either Note.

If the Company commits an event of default with respect to either Note and fails or is unable to cure that default, Bank Midwest may immediately terminate its obligation, if any, to make additional loans to the Company and may accelerate the Company's obligations under the Notes. Bank Midwest shall also have all other rights and remedies for default provided by the Uniform Commercial Code, as well as any other applicable law and the various loan agreements. Additionally, the Notes are secured by any and all security documents entered into between the Company and Bank Midwest, including but not limited to, all Security Agreements, Supplemental Security Agreements, Guaranties, Real Estate Mortgages and Assignment of Rents.

The foregoing description of the material terms of the Credit Facility, including the Notes, does not purport to be a complete description of the rights and obligations of the parties thereunder and is qualified in its entirety by reference to the full text of the Notes, each of which are filed herewith and incorporated by reference herein.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The disclosures set forth under Item 1.01 of this Form 8-K are incorporated by reference in this Item 2.03.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.



Exhibit No.   Description
10.1            Promissory Note (Line of Credit), between Bank Midwest and Art's-Way
              Manufacturing Co., Inc., dated May 13, 2022.

10.2            Promissory Note (Term Loan), between Bank Midwest and Art's-Way
              Manufacturing Co., Inc., dated May 13, 2022.

   104        Cover Page Interactive Data File (embedded within the Inline XBRL
              document)

--------------------------------------------------------------------------------

© Edgar Online, source Glimpses