Sydney [Sections 13 or 15(d)]
6. Notes Payable
Revolving Credit Facility
On August 5, 2020, QRHC and some of its domestic subsidiaries registered into that loan, safety and Guaranty contract (the “BBVA mortgage Agreement”) with BBVA American, as a lender, and as management broker, payday loans in PA security agent, and issuing lender, which offers for a credit score rating establishment (the “ABL Facility”) containing the following:
An asset-based revolving credit premises inside the maximum principal quantity of $15.0 million with a sublimit for issuance of emails of credit as high as 10% of optimal main number of the revolving credit score rating establishment. Each loan beneath the rotating credit center bears interest, during the borrowers’ solution, at either the Base rates, and the Applicable Margin, and/or LIBOR financing rates for any Interest years ultimately, as well as the relevant Margin, in each circumstances as identified within the BBVA mortgage arrangement. The readiness big date of this revolving credit score rating establishment try August 5, 2025. The revolving credit establishment consists of an accordion feature permitting the revolving credit establishment becoming increased by up to $10 million.
a machines mortgage premises from inside the optimum primary quantity of $2.0 million. Financial loans in products loan center is wanted anytime until August 5, 2023. Each financing according to the equipment mortgage establishment bears interest, at the individuals’ solution, at either the bottom rates, plus 1.75%, or the LIBOR Lending speed your Interest stage in essence, plus 2.75percent. The readiness time with the products loan facility is actually August 5, 2025.
Various of QRHC’s domestic subsidiaries include borrowers within the BBVA financing arrangement. QRHC and another of its residential subsidiaries are guarantors in BBVA Loan Agreement. As protection for all the responsibilities associated with the consumers beneath the BBVA financing Agreement, (i) the individuals according to the BBVA financing contract have given a primary priority lien on significantly their real and intangible private house, like a pledge in the money inventory and membership appeal, as relevant, of some of QRHC’s drive and secondary subsidiaries, and (ii) the guarantors within the BBVA Loan arrangement has issued a first concern lien about money stock and membership hobbies, as applicable, of particular of QRHC’s drive and secondary domestic subsidiaries.
The BBVA financing Agreement consists of certain economic covenants, such as the very least fixed fee insurance proportion. Furthermore, the BBVA financing arrangement contains bad covenants restricting, among other things, further indebtedness, purchases with associates, further liens, profit of possessions, dividends, investments and improvements, prepayments of personal debt, mergers and acquisitions, as well as other point customarily restricted such contracts. The BBVA financing arrangement also contains customary events of standard, like repayment defaults, breaches of representations and warranties, covenant non-payments, happenings of bankruptcy and insolvency, modification of controls, and breakdown of every guaranty or protection document supporting the BBVA financing contract to stay full force and results. Upon the occurrence of a meeting of default, the exceptional requirements under the BBVA mortgage contract could be expidited and turn right away due and payable.
The ABL establishment carries interest, at the choice, at either the bottom Rate, as defined during the BBVA financing Agreement, plus a margin which range from 0.75% to 1.25percent (3.0% by Sep 30, 2020), or the LIBOR Lending speed for interest stage in essence, plus a margin which range from 1.75per cent to 2.25percent (no borrowings since Sep 30, 2020).
Associated with the ABL Facility, we paid BBVA USA a charge of $50,000 and incurred different immediate expenses of approximately $166,877, which have been getting amortized within the life of the ABL center.
The BBVA mortgage Agreement changed our very own financing, protection and Guaranty Agreement, dated since March 24, 2017, with residents lender, state organization (the “Citizens financial loan Agreement”), that has been repaid and ended effective August 5, 2020. We taped $167,964 in loss on extinguishment of loans relating to this financing cancellation, like the write-off from the unamortized percentage of financial obligation issuance expenses and costs straight associated with the financing payoff.