Global Power Equipment Group Inc. (OTCMKTS:GLPW) Files An 8-K Entry into a Material Definitive Agreement
Item 2.03 Entry into a Material Definitive Agreement.

Global Power Equipment Group Inc. (the “Company”) previously disclosed that it entered into a $45 million senior secured credit agreement, dated June16, 2017, with an affiliate of Centre Lane Partners, LLC (“Centre Lane”), as Administrative Agent and Collateral Agent, and the other lenders (collectively, the “Lenders”) from time to time party thereto (the “Senior Secured Credit Agreement”).

On August17, 2017, the Company entered into a First Amendment to Senior Secured Credit Agreement (the “First Amendment”). Under the First Amendment, each of the Lenders has, among other things, agreed to provide the Company with a first-out term loan of up to an aggregate principal amount of $10 million (collectively, the “First-Out Loan”), which will mature on September30, 2018 (the “First-Out Maturity”). In addition to the fees provided in the original Senior Secured Credit Agreement, the First Amendment also requires the Company to pay an upfront fee equal to 7% of the First-Out Loan commitments, which bears interest at a rate of London Interbank Offered Rate plus 19% annual payable in-kind interest, and an exit fee equal to 7% of the aggregate outstanding principal amount of the First-Out Loan commitments, each of which is payable upon the First-Out Maturity. The First Amendment also changes the date by which the Company is required to give the Lenders its final audited consolidated balance sheet and related statements of income, shareholders’ equity, and cash flows for the year ended December31, 2016 from August31, 2017 to September15, 2017. Except as set forth above, the First Amendment does not materially alter the other terms of the Senior Secured Credit Agreement, including the interest rate, covenants, and conditions set forth therein.

While the First Amendment has provided the Company with a certain amount of incremental borrowing capacity, the Company’s overall liquidity remains constrained. The First Amendment is not anticipated to materially relieve the liquidity concerns identified in the Company’s Form10-K for the fiscal year ended December31, 2015 (the “2015 Form10-K”) and related earnings release. Investors should read the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” set forth in the 2015 Form10-K and any subsequent filings made by the Company with the U.S. Securities and Exchange Commission (the “SEC”).

While not a party to the First Amendment, entities associated with Wynnefield Capital,Inc. (the “Wynnefield Funds”), the Company’s largest stockholder, participated in the funding of the First-Out Loan, the terms of which are disclosed in the Wynnefield Funds’ Form13D/A filed with the U.S. Securities and Exchange Commission on or about the date of this filing.

On August23, 2017, the Company issued a press release announcing the matters set forth above. A copy of the press release is attached to this Current Report on Form8-K as Exhibit99.1.

The Company will include the First Amendment as an exhibit to its 2016 Annual Report on Form10-K, to be filed with the SEC. The foregoing description does not constitute a complete summary of the terms of the First Amendment and is qualified in its entirety by reference to the full text of the First Amendment.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth in Item 2.03 of this Current Report on Form8-K is incorporated by reference into this Item 2.03.

Item 2.03 Financial Statements and Exhibits.