Form 10-Q Pursuit Site Holding Corp. Revolving Credit Premises

Questionnaire [Sections 13 or 15(d)]

6. Notes Payable

Revolving Credit Establishment

On August 5, 2020, QRHC and specific of the residential subsidiaries registered into financing, Security and Guaranty Agreement (the “BBVA financing Agreement”) with BBVA USA, as a lender, so when management broker, security broker, and issuing lender, which gives for a credit establishment (the “ABL Facility”) comprising the immediate following:

An asset-based revolving credit center inside optimum primary level of $15.0 million with a sublimit for issuance of characters of credit score rating all the way to 10per cent of the max primary level of the revolving credit premises. Each loan beneath the revolving credit premises bears interest, during the individuals’ solution, at either the beds base rates, as well as the Applicable Margin, or perhaps the LIBOR Lending rates for all the Interest course in essence, and the Applicable Margin, in each circumstances as described when you look at the BBVA Loan arrangement. The readiness time regarding the revolving credit establishment try August 5, 2025. The revolving credit score rating establishment consists of an accordion ability allowing the revolving credit facility becoming increased by around ten bucks million.

a machines financing facility into the optimum major quantity of $2.0 million. Debts within the machines loan facility might be requested anytime until August 5, 2023. Each loan under the gear financing facility carries interest, on individuals’ solution, at either the Base rates, plus 1.75%, or perhaps the LIBOR financing speed the Interest stage ultimately, plus 2.75%. The maturity date of the machines loan establishment are August 5, 2025.

Particular of QRHC’s domestic subsidiaries will be the consumers in BBVA Loan contract. QRHC and one of the domestic subsidiaries include guarantors underneath the BBVA mortgage contract. As protection when it comes down to obligations from the borrowers within the BBVA Loan arrangement, (i) the consumers within the BBVA financing Agreement have approved an initial priority lien on substantially all of their concrete and intangible individual house, like a pledge of money stock and membership passions, as relevant, of specific of QRHC’s https://rapidloan.net/payday-loans-wa/ drive and indirect subsidiaries, and (ii) the guarantors under the BBVA mortgage Agreement posses granted a primary priority lien throughout the funds inventory and account welfare, as appropriate, of particular of QRHC’s immediate and indirect domestic subsidiaries.

The BBVA financing contract have specific financial covenants, like the absolute minimum fixed charge protection ratio. Furthermore, the BBVA financing Agreement has unfavorable covenants restricting, among other things, added indebtedness, deals with associates, additional liens, product sales of assets, returns, assets and progress, prepayments of loans, mergers and acquisitions, and other question customarily constrained in such agreements. The BBVA financing arrangement also contains traditional happenings of standard, like payment non-payments, breaches of representations and guarantees, covenant non-payments, happenings of bankruptcy and insolvency, modification of control, and problems of every guaranty or safety data supporting the BBVA financing arrangement to get into complete force and effects. Upon the occurrence of a conference of default, the outstanding commitments underneath the BBVA financing Agreement can be accelerated and turn right away due and payable.

The ABL Facility carries interest, at our choice, at either the bottom Rate, as identified for the BBVA Loan Agreement, plus a margin ranging from 0.75per cent to 1.25percent (3.0percent since September 30, 2020), or even the LIBOR credit Rate for interest stage essentially, plus a margin starting from 1.75per cent to 2.25percent (no borrowings as of Sep 30, 2020).

In connection with the ABL Facility, we paid BBVA USA a fee of $50,000 and incurred some other direct expenses of around $166,877, which have been becoming amortized across longevity of the ABL establishment.

The BBVA Loan contract replaced our financing, protection and Guaranty contract, outdated since February 24, 2017, with people Bank, state relationship (the “Citizens mortgage Agreement”), which was paid off and terminated efficient August 5, 2020. We taped $167,964 in reduction on extinguishment of personal debt in connection with this financing cancellation, including the write-off for the unamortized part of personal debt issuance bills and costs straight from the loan reward.