Section 1.01 Entering into a Material Definitive Agreement.
The loans bear interest at a prime rate plus an applicable margin. For loans that the Company designates as ABR loans, the base rate is the greater of the prime rate, the effective federal funds rate plus 0.5%, the applicable SOFR adjusted term for a term of one month plus 1.00%, or 1.75%, and the applicable margin is 4.0%. For loans that the Company designates as SOFR loans, the base rate is the applicable forward SOFR plus the forward SOFR adjustment, and the applicable margin is 5.0%.
The Loans are secured by substantially all of the assets of the Company and its subsidiaries. Loan proceeds may be used for authorized acquisitions and investments, working capital and other general corporate purposes. The Credit Agreement contains financial and other covenants, including minimum quarterly income and liquidity thresholds, and it includes limitations on, among other things, indebtedness, liens, investments, mergers or similar transactions, and certain equity issues.
The foregoing description of the Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the Credit Agreement, a copy of which will be filed as an attachment to the Company’s Form 10-Q for the quarterly period ending
Item 2.03 Creation of a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant.
The discussion in 1.01 above is incorporated herein by reference.
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