Quarterly report [Sections 13 or 15(d)]
6. Records Payable
Revolving Credit Score Rating Center
On August 5, 2020, QRHC and specific of their residential subsidiaries registered into a Loan, Security and Guaranty Agreement (the “BBVA Loan Agreement”) with BBVA American, as a loan provider, so that as management broker, equity agent, and providing lender, which gives for a credit score rating facility (the “ABL Facility”) comprising the following:
An asset-based revolving credit center from inside the maximum principal amount of $15.0 million with a sublimit for issuance of characters of credit all the way to 10% associated with the maximum primary amount of the revolving credit score rating center. Each loan in revolving credit establishment contains interest, from the individuals’ option, at either the beds base rates, in addition to the relevant Margin, or even the LIBOR financing price for Interest years ultimately, and the Applicable Margin, in each instance as described in the BBVA mortgage Agreement. The readiness date of revolving credit score rating center is August 5, 2025. The revolving credit facility consists of an accordion ability allowing the revolving credit score rating facility to-be increased by doing ten bucks million.
an equipment financing premises inside max primary number of $2.0 million. Debts according to the equipment mortgage facility is likely to be asked for at any time until August 5, 2023. Each mortgage within the products loan center bears interest, during the borrowers’ solution, at either the beds base speed, plus 1.75percent, or perhaps the LIBOR financing price for the Interest duration in effect, plus 2.75percent. The maturity day with the machines mortgage premises are August 5, 2025.
Certain of QRHC’s home-based subsidiaries include consumers according to the BBVA financing arrangement. QRHC and another of their home-based subsidiaries tend to be guarantors in BBVA mortgage contract. As safety for all the responsibilities from the individuals according to the BBVA financing arrangement, (i) the borrowers under the BBVA Loan contract posses given a primary top priority lien on considerably all of their physical and intangible private belongings, including a pledge of this capital inventory and membership hobbies, as relevant, of certain of QRHC’s direct and secondary subsidiaries, and (ii) the guarantors within the BBVA financing arrangement posses approved a first concern lien throughout the money inventory and account interests, as appropriate, of particular of QRHC’s drive and indirect domestic subsidiaries.
The BBVA mortgage arrangement includes certain financial covenants, like the very least fixed https://rapidloan.net/payday-loans-ok/ cost insurance coverage proportion. In addition to that, the BBVA mortgage contract consists of bad covenants limiting, among other things, extra indebtedness, transactions with associates, added liens, product sales of property, dividends, assets and advances, prepayments of obligations, mergers and acquisitions, and other thing typically constrained this kind of agreements. The BBVA financing arrangement also includes traditional activities of standard, including repayment defaults, breaches of representations and guarantees, covenant defaults, events of bankruptcy proceeding and insolvency, modification of regulation, and problems of every guaranty or protection data supporting the BBVA Loan Agreement to be in full energy and impact. Upon the incident of an event of default, the outstanding responsibilities under the BBVA financing arrangement are expidited and turn into straight away due and payable.
The ABL center holds interest, at our very own solution, at either the beds base Rate, as defined within the BBVA mortgage Agreement, plus a margin ranging from 0.75per cent to 1.25% (3.0% by Sep 30, 2020), and/or LIBOR Lending rates your interest period in effect, plus a margin ranging from 1.75percent to 2.25% (no borrowings since September 30, 2020).
Associated with the ABL Facility, we settled BBVA American a fee of $50,000 and sustained some other direct bills of approximately $166,877, which are being amortized over the lifetime of the ABL Facility.
The BBVA Loan contract replaced the financing, protection and Guaranty Agreement, outdated as of March 24, 2017, with Citizens Bank, National Association (the “Citizens mortgage Agreement”), that was reduced and terminated successful August 5, 2020. We tape-recorded $167,964 in control on extinguishment of obligations associated with this mortgage cancellation, such as the write-off of the unamortized percentage of financial obligation issuance expenses and fees directly associated with the loan compensation.