ALLIED HEALTHCARE PRODUCTS, INC. (NASDAQ:AHPI) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
As previously reported, on February 27, 2017, Allied Healthcare Products, Inc. (the Company) entered into that certain Loan and Security Agreement (the Credit Agreement) with Summit Financial Resources, L.P. (Summit) to which the Company obtained a secured revolving credit facility with borrowing availability (the Credit Facility). The Companys obligations under the Credit Facility are secured by all of the Companys personal property, both tangible and intangible, to the terms and subject to the conditions set forth in the Credit Agreement. Availability of funds under the Credit Agreement is based on the Companys accounts receivable and inventory but will not exceed $2,000,000.00.
On April 16, 2018 the Company and Summit agreed to amend the Credit Agreement to extend its maturity to February 27, 2020.
The Company and Summit have agreed to amend the Credit Agreement to further extend its maturity until February 27, 2021, at which time all amounts outstanding under the Credit Facility will be due and payable.
The minimum monthly payment of .25% (25 basis points) on the maximum availability ($5,000 per month) will remain in effect. In the event the Company prepays or terminates the Credit Facility prior to February 27, 2020, the Company will be obligated to pay an amount equal to the minimum monthly payment multiplied by the number of months remaining between February 27, 2020 and the date of such prepayment or termination.
The foregoing summary of the Credit Agreement, as amended, is qualified in its entirety by reference to the Second Amendment to Loan and Security Agreement, a copy of which is filed herewith as Exhibit 99.1, and incorporated by reference herein.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information related to the Credit Facility discussed under Item 1.01 set forth above is hereby incorporated by reference under this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
| 99.1 | Second Amendment to Loan and Security Agreement, dated April 24, 2019, by and between the Allied Healthcare Products, Inc. and Summit Financial Resources, L.P. |
ALLIED HEALTHCARE PRODUCTS INC Exhibit
EX-99.1 2 tv519623_ex99-1.htm EXHIBIT 99.1 Exhibit 99.1 Second Amendment to Loan and Security Agreement This Second Amendment to Loan and Security Agreement (the “Amendment”) is made and entered into by and between SUMMIT FINANCIAL RESOURCES,…
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About ALLIED HEALTHCARE PRODUCTS, INC. (NASDAQ:AHPI)
Allied Healthcare Products, Inc. manufactures a range of respiratory products used in the healthcare industry in a range of hospital and alternate site settings, including sub-acute care facilities, home healthcare and emergency medical care. The Company’s respiratory care products are used in the treatment of acute and chronic respiratory disorders such as asthma, emphysema, bronchitis and pneumonia. Respiratory care products are used in both hospitals and alternate care settings. Its medical gas equipment consists of hospitals, alternate care settings and surgery centers. The Company’s medical gas equipment products include medical gas system construction products, medical gas system regulation devices, disposable oxygen and specialty gas cylinders, and portable suction equipment. Its emergency medical products include respiratory/resuscitator products and trauma patient handling products. It also offers trauma and patient handling products, including spine immobilization products.