FALCONSTOR SOFTWARE, INC. (NASDAQ:FALC) Files An 8-K Entry into a Material Definitive Agreement

FALCONSTOR SOFTWARE, INC. (NASDAQ:FALC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.

On December 27, 2019, FalconStor Software, Inc. (the “Company”) entered into Amendment No. 1 to Amended and Restated Term Loan Credit Agreement (the “Amendment”), by and among the Company, certain of the Company’s affiliates in their capacities as guarantors, HCP-FVA, LLC (“HCP-FVA”) as administrative agent for the lenders party thereto (the “Lenders”), ESW Capital, LLC (“ESW”), as co-agent, and the Lenders, to provide for, among other things, a new $2,500,000 term loan facility to the Company (the “2019 Term Loan”). The Amendment also provides for certain financial covenants. On December 27, 2019, the Company drew down $1,000,000 of the 2019 Term Loan and the Company will pay a fixed amount of interest on such advance equal to 15% of the principal amount advanced.

In connection with the initial advance of the 2019 Term Loan, HCP-FVA funded $620,000, ESW funded $378,439 and Michael Kelly funded $1,561. HCP-FVA is an affiliate of Hale Capital Partners, LP, the Company’s largest stockholder, and an affiliate of a director of the Company, Martin Hale. ESW is a greater than 5% stockholder of the Company and Mr. Kelly is a director of the Company.

The above description of the Amendment 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 Current Report on Form 8-K and is incorporated herein by reference.

The information contained in Item 1.01 is incorporated by reference into this Item 2.03.

(d) Exhibits

10.1 Amendment No. 1 to Amended and Restated Term Loan Credit Agreement, dated as of December 27, 2019, by and among FalconStor Software, Inc., HCP-FVA, LLC, as Administrative Agent and as a Lender, ESW Capital, LLC, as Co-Agent and as a Lender, the Lenders party thereto and the other Loan Parties named therein.


FALCONSTOR SOFTWARE INC Exhibit
EX-10.1 2 ex101to8k04637016_01032020.htm   Execution Version   AMENDMENT NO. 1   TO AMENDED AND RESTATED TERM LOAN CREDIT AGREEMENT   This Amendment No. 1 to Amended and Restated Term Loan Credit Agreement (this “Amendment”),…
To view the full exhibit click here

Story continues below

About FALCONSTOR SOFTWARE, INC. (NASDAQ:FALC)

FalconStor Software, Inc. is a Software-Defined Storage (SDS) company offering a converged data services software platform. The Company’s platform FreeStor, allows information technology (IT) organizations minimize and eliminate that complexity with the delivery of migration, continuity, protection, recovery and optimization for any storage environment through a management interface for a price based on managed capacity across arrays, servers, hypervisors, data centers, and the cloud. The Company’s Intelligent Abstraction core provides a scalable storage hypervisor, coupled with a data services engine and automation. The Company’s Business Continuity and Disaster Recovery products include network storage server (NSS) and continuous data protector (CDP). Its Optimized Backup and Deduplication (OBD) products merge its virtual tape library (VTL) and file-interface deduplication system (FDS) solutions.

An ad to help with our costs