The new ABL facility replaces the prior JPMorgan facility on broadly similar terms, providing up to $25M in secured liquidity. Monitor whether the company draws on the facility in coming quarters — a material draw would signal working capital needs. The S-3 resale registration filed 8 days prior (registering shares from a March private placement at $8/share) and this new credit facility together suggest the company is proactively managing its capital structure amid a declining stock price (market cap ~$53M).
Price Chart
Executive Summary
CarParts.com entered into a $25M asset-based revolving credit facility with First Business Specialty Finance, LLC, secured by substantially all assets, and simultaneously terminated its prior JPMorgan Chase credit facility which had no outstanding balance. The new facility provides liquidity at SOFR+3.25% with a March 2028 maturity, replacing the prior facility on similar terms.
Key Facts
- Entered into $25M asset-based revolving credit facility with First Business Specialty Finance, LLC on June 15, 2026
- Facility secured by substantially all assets of the company and guaranteed by three subsidiaries
- Interest rate is 1-Month Term SOFR + 3.25% per annum, subject to reduction based on Fixed Charge Coverage Ratio
- Facility matures March 31, 2028, with automatic one-year renewals unless terminated with 30 days notice
- Prepayment premium of $750,000 if terminated before June 15, 2027, or $500,000 thereafter
- Springing financial covenant: Fixed Charge Coverage Ratio >= 1.10x if cash + availability < $15M or availability < $7.5M
- Prior JPMorgan Chase credit facility terminated with no amounts outstanding at termination
- Proceeds to refinance existing JPMorgan indebtedness and for working capital
Financial Impact
New $25M revolving credit facility provides liquidity headroom; prior facility had no outstanding balance at termination. Facility fees include $125,000 upfront, $62,500 annual, and 0.25% unused line fee.
Risk Factors
- Facility is secured by substantially all assets, limiting unsecured borrowing capacity
- Springing financial covenant could trigger if liquidity deteriorates, potentially restricting operations
- Prepayment penalties create cost to refinance or terminate early
- Stock has declined significantly since March 2026 private placement at $8/share
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001140361-26-025457 |
| Document: ef20076252_ex10-2.htm | 0001140361-26-025457 |
| Document: ef20076252_8k.htm | 0001140361-26-025457 |
| Document: 0001140361-26-025457-index-headers.html | 0001140361-26-025457 |
| Document: 0001140361-26-025457-index.html | 0001140361-26-025457 |
| Document: 0001140361-26-025457.txt | 0001140361-26-025457 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 6w ago | Insider Cluster | $9.31 $8.98 | ▼ −3.54% | ▼ −3.10% | $7.87 (−15.47%) |
Sep 9, 2026 6w ago | Insider Cluster | $8.69 $9.31 | ▲ +7.13% | ▲ +6.28% | $7.87 (−9.44%) |
Aug 31, 2026 8w ago | Insider Cluster | $7.48 $7.97 | ▲ +6.55% | ▲ +6.11% | $7.87 (+5.21%) |
Aug 6, 2026 11w ago | Press Release | $6.75 $6.32 | ▼ −6.37% | ▼ −6.34% | $7.87 (+16.59%) |
Jun 17, 2026 18w ago | EFFECT | $6.41 $6.34 | ▲ +1.17% | ▲ +1.95% | $7.87 (−22.78%) |
Jun 16, 2026 18w ago | 8-K | $6.41 $6.34 | ▼ −1.17% | ▼ −1.95% | $7.87 (+22.78%) |
Jun 8, 2026 20w ago | S-3 | $5.95 $5.95 | · 0.00% | ▲ +1.58% | $7.87 (+32.27%) |
May 21, 2026 22w ago | 8-K | $6.40 $6.20 | ▼ −3.13% | ▼ −3.57% | $7.87 (+22.97%) |
May 11, 2026 24w ago | 8-K | $7.30 $6.61 | ▼ −9.44% | ▼ −10.01% | $7.87 (+7.81%) |
Mar 5, 2026 33w ago | 8-K | $7.47 $8.10 | ▼ −8.45% | ▼ −7.61% | $7.87 (−5.41%) |
US Market Status
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