Fifth Street Asset Management Inc. (NASDAQ:FSAM) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
On May 15, 2017, Fifth Street Holdings L.P. (Fifth Street
Holdings), a partially owned subsidiary of Fifth Street Asset
Management Inc. (the Company), entered into the Limited Guaranty
and Contribution Agreement (the Limited Guaranty) with Mr.
Leonard M. Tannenbaum, chief executive officer of the Company and
a limited partner of Fifth Street Holdings, whereby, in the event
of an acceleration of Fifth Street Holdings credit facility, Mr.
Tannenbaum agreed to backstop any shortfall in the funds and
assets available to Fifth Street Holdings and the other
guarantors to the credit facility to repay the outstanding
obligations under the credit facility, in the form of an equity
contribution or a subordinated loan to Fifth Street Holdings. In
exchange, Fifth Street Holdings agreed to pay Mr. Tannenbaum
reasonable consideration in amounts to be determined by the audit
committee of the board of directors of the Company. The Limited
Guaranty will terminate upon the earliest to occur of (i) August
15, 2018, (ii) the mutual agreement of the parties (subject to
approval of the majority of the independent directors of the
Company), (iii) repayment of the credit facility, (iv) any change
of control of Fifth Street Holdings or the Company and (v) any
material amendment, waiver or other modification of the credit
facility.
The foregoing description of the Limited Guaranty does not
purport to be complete and is qualified in its entirety by
reference to the Limited Guaranty, attached hereto as Exhibit
10.1 and incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
| 10.1 |
Limited Guaranty and Contribution Agreement by and between Fifth Street Holdings L.P. and Leonard M. Tannenbaum, dated as of May 15, 2017 |
About Fifth Street Asset Management Inc. (NASDAQ:FSAM)
Fifth Street Asset Management Inc. is an alternative asset manager. The Company provides asset management services to its investment funds (the Fifth Street Funds or the funds), which consist of Fifth Street Finance Corp. (FSC) and Fifth Street Senior Floating Rate Corp. (FSFR), both publicly-traded business development companies (together, the BDCs). Its segment provides asset management services to the Fifth Street Funds. The Company conducts all of its operations through its subsidiaries, Fifth Street Management LLC (FSM), Fifth Street CLO Management LLC (CLO Management) and FSCO GP LLC (FSCO GP). The funds, managed by the Company, provide financing solutions to small and mid-sized companies across their capital structures, mainly in connection with investments by private equity sponsors. It provides credit solutions across the capital structure, including one-stop financing, unitranche debt, senior secured debt, mezzanine debt, equity co-investments and venture debt financing. Fifth Street Asset Management Inc. (NASDAQ:FSAM) Recent Trading Information
Fifth Street Asset Management Inc. (NASDAQ:FSAM) closed its last trading session down -0.20 at 3.95 with 133,570 shares trading hands.