Questionnaire [Sections 13 or 15(d)]
6. Notes Payable
Revolving Credit Score Rating Facility
On August 5, 2020, QRHC and certain of their home-based subsidiaries joined into financing, safety and Guaranty contract (the “BBVA Loan Agreement”) with BBVA United States Of America, as a lender, so that as management agent, guarantee representative, and giving lender, that provides for a credit facility (the “ABL Facility”) comprising the immediate following:
An asset-based revolving credit score rating establishment for the optimum primary amount of $15.0 million with a sublimit for issuance of emails of credit of up to 10per cent with the max major number of the revolving credit establishment. Each mortgage within the revolving credit premises carries interest, in the individuals’ alternative, at either the bottom speed, as well as the Applicable Margin, or even the LIBOR credit price for your Interest years ultimately, as well as the relevant Margin, in each situation as explained for the BBVA Loan arrangement. The maturity day on the revolving credit score rating premises are August 5, 2025. The revolving credit center has an accordion ability permitting the revolving credit score rating premises to get improved by to ten dollars million.
an equipment loan center within the optimum principal level of $2.0 million. Loans under the machines mortgage facility is likely to be required anytime until August 5, 2023. Each loan underneath the devices financing facility contains interest, within borrowers’ alternative, at either the beds base Rate, plus 1.75per cent, or even the LIBOR financing Rate for the Interest stage ultimately, plus 2.75percent. The readiness day with the gear mortgage facility try August 5, 2025.
Various of QRHC’s residential subsidiaries include individuals underneath the BBVA mortgage Agreement. QRHC and another of its home-based subsidiaries are guarantors within the BBVA financing contract. As safety for the duties of consumers beneath the BBVA financing arrangement, (i) the individuals in BBVA mortgage Agreement have actually issued a first concern lien on considerably all of their concrete and intangible individual land, including a pledge associated with the money stock and account passion, as appropriate, of particular of QRHC’s immediate and secondary subsidiaries, and (ii) the guarantors within the BBVA Loan arrangement posses granted a primary consideration lien about money inventory and membership passion, as applicable, of particular of QRHC’s direct and secondary domestic subsidiaries.
The BBVA Loan contract includes certain monetary covenants, including a minimum fixed cost insurance ratio. In addition to that, the BBVA financing arrangement contains negative covenants limiting, on top of other things, added indebtedness, deals with affiliates, extra liens, sale of property, dividends, opportunities and advances, prepayments of debt, mergers and purchases, and various other topic customarily limited this kind of contracts. The BBVA mortgage arrangement also incorporates traditional occasions of default, including payment defaults, breaches of representations and guarantees, covenant non-payments, events of bankruptcy and insolvency, modification of controls, and breakdown of any guaranty or safety document giving support to the BBVA mortgage Agreement to be in complete energy and result. Upon the incident of a meeting of default, the exceptional obligations beneath the BBVA Loan Agreement is expidited and turn into straight away due and payable.
The ABL premises bears interest, at all of our solution, at either the Base Rate, as defined in the BBVA financing contract, plus a margin starting from 0.75per cent to 1.25per cent (3.0percent as of September 30, 2020), or even the LIBOR financing rates for your interest course essentially, plus a margin including 1.75per cent to 2.25per cent (no borrowings by September 30, 2020).
Relating to the ABL establishment, we settled BBVA USA a charge of $50,000 and obtain additional immediate bills of around $166,877, that are being amortized on the lifetime of the ABL premises.
The BBVA Loan arrangement replaced all of our Loan, Security and Guaranty contract, dated by February 24, 2017, with Citizens financial, National organization (the “Citizens Bank Loan Agreement”), that has been paid off and ended successful August 5, https://rapidloan.net/payday-loans-wv/ 2020. We recorded $167,964 in loss on extinguishment of obligations associated with this loan firing, such as the write-off in the unamortized part of debt issuance outlay and fees directly linked to the loan payoff.