IPO - 1st FRANKLIN FINANCIAL CORP

Form Type: POS AM

Filing Date: 2025-05-12

Corporate Action: Ipo

Type: Update

Accession Number: 000137647425000444

Filing Summary: 1st Franklin Financial Corporation is filing a post-effective amendment to its registration statement under the Securities Act of 1933, corresponding to the offering of its Series 1 Variable Rate Subordinated Debentures. The Debentures represent subordinated, unsecured debt obligations and will be issued under an indenture with U.S. Bank Trust Company as trustee. They will have varying interest rates established weekly, based on different minimum purchase amounts. The maturity period for each Debenture is initially set for four years from the issue date, with the option for automatic extension unless redeemed. The offering is set to commence from the date the registration statement becomes effective, with the proceeds earmarked for general corporate purposes, including potential repayment of existing debt. The Debentures, however, are not listed on any securities exchange and carry risks inherent in unsecured investment instruments, including the possibility of losing all or part of the investment. The company has not made arrangements to place any proceeds into escrow or similar accounts, adding a layer of risk regarding liquidity and repayment capacity.

Form Type: POS AM

Filing Date: 2025-05-12

Corporate Action: Ipo

Type: Update

Accession Number: 000137647425000445

Filing Summary: 1st Franklin Financial Corporation is offering to sell Senior Demand Notes on a continuous basis with an aggregate principal amount of $482,793,186. The notes are senior, unsecured obligations and issued under an Indenture with U.S. Bank Trust Company as Trustee. The notes will have no stated maturity and will be redeemable at any time upon request, with a variable interest rate that depends on the holder's daily balance of the notes. The offering will occur directly to the public without any underwriter, and proceeds will go to the company’s general corporate purposes, which may include repayment of existing debts. The risk factors associated with this investment include the lack of security and the potential for substantial financial loss, as the notes are not backed by bank deposits or similar obligations, nor insured by federal agencies. Investors are cautioned that there is no obligation to sell a minimum amount of notes and that the company may reject any subscriptions for any reason. The registration statement will remain effective until all notes are sold or the statement ceases to be effective with the SEC.