Questionnaire [Sections 13 or 15(d)]
6. Notes Payable
Rotating Credit Score Rating Establishment
On August 5, 2020, QRHC and some of its residential subsidiaries registered into a Loan, safety and Guaranty Agreement (the “BBVA mortgage Agreement”) with BBVA USA, as a loan provider, and as administrative agent, collateral representative, and giving financial, which provides for a credit establishment (the “ABL Facility”) comprising the annotated following:
An asset-based revolving credit premises into the maximum main amount of $15.0 million with a sublimit for issuance of characters of credit as high as 10per cent associated with max primary level of the revolving credit score rating center. Each loan underneath the revolving credit score rating premises carries interest, in the individuals’ alternative, at either the beds base Rate, in addition to the relevant Margin, or perhaps the LIBOR credit speed your Interest Period ultimately, and the Applicable Margin, in each case as defined in the BBVA financing arrangement. The maturity day with the revolving credit score rating center was August 5, 2025. The revolving credit premises contains an accordion element allowing the revolving credit facility getting enhanced by up to ten dollars million.
a devices financing premises into the optimum principal number of $2.0 million. Financing beneath the products loan facility is likely to be asked for at any time until August 5, 2023. Each financing under the products financing establishment holds interest, in the borrowers’ solution, at either the Base speed, plus 1.75%, or the LIBOR financing speed for all the Interest Period in effect, plus 2.75percent. The maturity date of machines financing center is August 5, 2025.
Select of QRHC’s domestic subsidiaries would be the individuals underneath the BBVA Loan arrangement. QRHC and something of its domestic subsidiaries become guarantors beneath the BBVA Loan contract. As safety your responsibilities regarding the individuals according to the BBVA mortgage Agreement, (i) the consumers according to the BBVA Loan Agreement need issued a first top priority lien on substantially all their physical and intangible private residential property, including a pledge on the investment inventory and account passion, as appropriate, of particular of QRHC’s drive and secondary subsidiaries, and (ii) the guarantors in BBVA financing arrangement have awarded a primary concern lien in the funds inventory and account welfare, as relevant, of some of QRHC’s direct and secondary home-based subsidiaries.
The BBVA Loan arrangement have certain monetary covenants, such as a minimum fixed charge plans proportion. And also, the BBVA Loan Agreement have unfavorable covenants restricting, among other things, further indebtedness, transactions with associates, added liens, deals of possessions, returns, assets and advances, prepayments of debt, mergers and acquisitions, alongside thing customarily constrained such agreements. The BBVA mortgage contract also incorporates traditional happenings of standard, such as repayment defaults, breaches of representations and guarantees, covenant defaults, events of bankruptcy and insolvency, changes of control, and problems of any guaranty or safety data supporting the BBVA financing arrangement to stay in full energy and result. Upon the occurrence of a conference of default, the exceptional requirements under the BBVA mortgage Agreement can be expidited and turn instantly because of and payable.
The ABL premises bears interest, at our very own alternative, at either the beds base rates, as described in the BBVA mortgage contract, plus a margin starting from 0.75per cent to 1.25percent (3.0per cent by September 30, 2020), or the LIBOR Lending price when it comes down to interest period essentially, plus a margin including 1.75percent to 2.25per cent (no borrowings by September 30, 2020).
Regarding the the ABL establishment, we paid BBVA American a fee of $50,000 and sustained more direct expenses of around $166,877, which are getting amortized across lifetime of the ABL premises.
The BBVA financing Agreement changed all of our financing, Security and Guaranty arrangement, outdated by February 24, 2017, with Citizens lender, nationwide organization (the “Citizens financial loan Agreement”), that was paid and ended successful August 5, 2020. We recorded $167,964 in loss on extinguishment of personal debt regarding the this mortgage cancellation, such as the write-off on the unamortized portion of financial obligation issuance outlay and charges right linked to the mortgage benefit.