Communications Systems, Inc. (NASDAQ:JCS) Files An 8-K Entry into a Material Definitive Agreement
On August 28, 2020, Communications Systems, Inc. (the “Company”) entered into a $5.0 million credit facility with Wells Fargo Bank, National Association. The Company’s obligations under the credit facility are secured by a security agreement covering a securities accounts the Company maintains with Wells Fargo and Wells Fargo-affiliated entities. There are no other security interests on Company assets in connection with the credit facility. The Company’s obligations under the credit facility are guaranteed by Company’s subsidiaries, Transition Networks, Inc.; JDL Technologies, Inc.; Ecessa Corporation; and Twisted Technologies, Inc. These subsidiaries have not pledged any assets to support their guarantees.
The credit facility contains customary covenants.
In connection with the Company’s entering into a new $5.0 million credit facility described in Item 1.01 of this Form 8-K, the Company and Wells Fargo terminated the prior credit facility and related agreements with Wells Fargo, except that the security agreement between the Company and Wells Fargo and the Guaranty by the Company’s subsidiaries were amended and updated as of August 28, 2020.
COMMUNICATIONS SYSTEMS INC Exhibit
EX-10.1 2 a201385_ex10-1.htm CREDIT AGREEMENT DATED AS OF AUGUST 28,…
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About Communications Systems, Inc. (NASDAQ:JCS)
Communications Systems, Inc. (CSI) operates directly and through its subsidiaries located in the United States, Costa Rica and the United Kingdom. The Company operates through three segments: Suttle, Transition Networks and JDL Technologies (JDL). The Company provides physical connectivity infrastructure products and services for global deployments of broadband networks. The Company is principally engaged through its subsidiary and business unit, Suttle, Inc., in the manufacture and sale of connectivity infrastructure products for broadband and voice communications, and through its another subsidiary and business unit, Transition Networks, Inc., in the manufacture and sale of core media conversion products for broadband networks. Through its JDL Technologies, Inc. subsidiary and business unit, CSI provides information technology (IT) solutions, including network design, computer infrastructure installations, IT service management, network security and network operation services.