ENDOLOGIX, INC. (NASDAQ:ELGX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
On May 26, 2020, Endologix, Inc. (the Company) entered into a forbearance agreement (the ABL Forbearance Agreement) to Credit Agreement, dated as of August 9, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the Credit Agreement), with the Lenders party thereto from time to time, and Deerfield ELGX Revolver, LLC, as agent for itself and the Lenders (collectively, the ABL Forbearing Parties). Additionally, on May 26, 2020, the Company entered into a forbearance agreement (the Facility Forbearance Agreement and, collectively with the ABL Forbearance Agreement, the Forbearance Agreements) to Amended and Restated Facility Agreement, dated as of August 9, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the Facility Agreement), with the Lenders party thereto from time to time, and Deerfield Private Design Fund I.V., L.P. as agent for itself and the Lenders (collectively, the Facility Forbearing Parties and, collectively with the ABL Forbearing Parties, the Forbearing Parties).
The Company informed the Forbearing Parties that it anticipated its Quarterly Report on Form 10-Q for the period ending March 31, 2020 would include a statement that there is substantial doubt regarding the Companys ability to continue as a going concern within one year after the date of such financial statements and such statement would result in an event of default under each of the Credit Agreement and the Facility Agreement. to the Forbearance Agreements, subject to certain terms and conditions, the Forbearing Parties have agreed to forbear from exercising any rights or remedies arising from such event of default under the Credit Agreement or Facility Agreement, as applicable. As a condition to the Forbearance Agreements, the interest rate on all obligations under the Credit Agreement and the Facility Agreement, respectively, would increase by 2% per annum and the Company agreed to certain covenants.
The Forbearance Agreements will terminate on the earlier of June 15, 2020 or the occurrence of certain other conditions, including the occurrence of a separate event of default (the Forbearance Termination Date).
The foregoing descriptions of the ABL Forbearance Agreement and the Facility Forbearance Agreement are not complete and are qualified in their entirety by reference to the full text of the ABL Forbearance Agreement and of the Facility Forbearance Agreement, copies of which are filed herewith as Exhibit 10.1 and 10.2, respectively, and to this Current Report on Form 8-K and are incorporated herein by reference.
(d) Exhibits
| 10.1 | Forbearance Agreement, dated as of May 26, 2020, to that certain Credit Agreement, dated as of August 9, 2018 (as amended, restated, supplemented or otherwise modified from time to time), by and among Endologix, Inc., the Lenders party thereto from time to time, and Deerfield ELGX Revolver, LLC | |
| 10.2 | Forbearance Agreement, dated as of May 26, 2020, to that certain Amended and Restated Facility Agreement, dated as of August 9, 2018 (as amended, restated, supplemented or otherwise modified from time to time), by and among Endologix, Inc., the Lenders party thereto from time to time, and Deerfield Private Design Fund I.V., L.P. |