ADESTO TECHNOLOGIES CORPORATION (NASDAQ:IOTS) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry Into a Material Definitive Agreement.
On September29, 2017, Adesto Technologies Corporation (the “Company”), entered into a Second Business Financing Modification Agreement dated as of September29, 2017 (the “Amendment”) by and between Western Alliance Bank, an Arizona corporation, as lender (“Lender”), and the Company, as borrower, amending that certain Business Financing Agreement, dated as of July7, 2016, by and between the Company and the Lender, as amended (the “Business Financing Agreement”).
The Amendment extended the maturity dates of the revolving credit line advance under the Business Financing Agreement (the “Line of Credit”) and the term loan under the Business Financing Agreement (the “Term Loan”) to July 2019 and September 2021, respectively, from July 2018 and June 2019, respectively.In addition, the Amendment increases the amount available under the Line of Credit in the aggregate amount to $5.0 million from $2.0 million, increases the foreign sublimit under the Line of Credit to $4.0 million from $1.0 million and resets the initial advance rate to 60% of eligible receivables from 80% of eligible receivables.
The Amendment also decreases the interest rates under the Line of Credit and the Term Loan and changes the payment schedule under the Term Loan. to the Amendment, the Company will make interest-only payments on the Term Loan from October10, 2017 and on the 10th calendar day of each month thereafter, and will make principal and interest payments in 36 equal monthly installments beginning on October10, 2018, and on the 10th calendar day of each month thereafter, until the maturity date of the Term Loan.
Under the Amendment, the Company has agreed to modified and additional negative covenants, requiring the Company to maintain a ratio of at least 1.25:1.00 with respect to either of the following: (x)the sum of its cash and certain receivables to its indebtedness under the Business Financing Agreement; or (y)its Adjusted EBITDA (as defined in the Amendment), less certain capital expenditures, to the sum of (a)all principal payments and interest expense that would be owed by the Company to Lender if the Term Loan’s amortization were to start on September 29, 2017, all measured on a trailing 4-quarter basis, plus (b)all principal payments and interest expense on any other debt of the Company. The Company is also subject to the requirement that its quarterly revenues shall not negatively deviate more than 25% from the projections provided to the Lender in accordance with the Business Financing Agreement.
The description of the Amendment contained herein does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Amendment, which is filed as Exhibit 10.1 to this report and incorporated herein by reference.
Item 1.01 Financial Statements and Exhibits.
ADESTO TECHNOLOGIES Corp ExhibitEX-10.1 2 d458899dex101.htm EX-10.1 EX-10.1 Exhibit 10.1 SECOND BUSINESS FINANCING MODIFICATION AGREEMENT This Second Business Financing Modification Agreement (this “Modification Agreement”) is entered into as of September 29,…To view the full exhibit click here
About ADESTO TECHNOLOGIES CORPORATION (NASDAQ:IOTS)
Adesto Technologies Corporation is a provider of application-specific and ultra-low power non-volatile memory products. The Company optimizes its non-volatile memory products for Internet of Things (IoT), applications, including current and next-generation Internet-connected devices in the consumer, industrial, medical and wearables markets. It operates in application-specific and feature-rich, ultra-low power non-volatile memory (NVM) products segment. It combines its non-volatile memory design capabilities with intellectual property and differentiated technology platforms to deliver products that manage the overall energy consumption of its customers’ systems and battery life. Its products feature embedded intelligence in a small form factor. It sells its products directly to original equipment manufacturers and original design manufacturers, respectively that manufacture products for its end customers.
