HERITAGE GLOBAL INC. (OTCMKTS:HGBL) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
Entry into a Material Definitive Agreement.
On March 29, 2019, Heritage Global Inc. (the “Company”) entered into the Change in Terms Agreement and the First Amendment to Business Loan Agreement (collectively, the “Amendments”), which amend the Company’s secured promissory note and business loan agreement, respectively, with First Choice Bank (the “Credit Facility”). The Amendments, among other things, (i) increase the principal amount of the revolving line of credit to $3.0 million, (ii) extend the maturity date of the Credit Facility to April 5, 2020, and (iii) raise the floor interest rate under the Credit Facility from 5.25% to 5.50%. to the Amendments, the Company will pay interest on the Credit Facility in regular monthly payments beginning on May 5, 2019, rather than on November 5, 2018.
The Amendments retain certain customary financial covenants and negative covenants that, among other things, include restrictions on the Company’s ability to create, incur or assume indebtedness for borrowed money, including capital leases or to sell, transfer, mortgage, assign, pledge, lease, grant a security interest in, or encumber any of the Company’s assets. to the Amendments, the Company has also covenanted to reflect positive net income of no less than $250,000 on a quarterly basis, with the adding back of all non-cash expenses and the deducting of all non-cash income.
This summary is qualified in its entirety by reference to the full text of the Amendments, which are attached hereto as Exhibit10.1 and 10.2, and incorporated by reference herein.
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Item 1.01 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The disclosure in Item 1.01 of this Current Report on Form8-K regarding the Credit Facility is incorporated by reference into this Item 1.01.
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Item 1.01 |
Financial Statements and Exhibits |
(d) Exhibits
Heritage Global Inc. Exhibit
EX-10.1 2 hgbl-ex101_6.htm EX-10.1 hgbl-ex101_6.htm Exhibit 10.1 CHANGE IN TERMS AGREEMENT PrincipalLoan DateMaturityLoan NoCall / CollAccountOfficerInitials $3,…
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About HERITAGE GLOBAL INC. (OTCMKTS:HGBL)
Heritage Global Inc., formerly Counsel RB Capital Inc., is engaged in asset liquidation transactions, valuations and advisory. The Company operates in its asset liquidation business segment. It focuses on identifying, valuing, acquiring and monetizing underlying tangible and intangible assets in approximately 30 global industrial and financial sectors. It specializes both in acting as an adviser, as well as acquiring or brokering manufacturing facilities, surplus industrial machinery and equipment, industrial inventories, accounts receivable portfolios, intellectual property and business enterprises. Its subsidiaries include Heritage Global Partners, Inc., which is a service, global auction, appraisal and asset advisory company, and National Loan Exchange Inc., which is a broker of charged-off receivables. The Company also includes the purchase and sale, including at auction, of industrial machinery and equipment, real estate, inventories, accounts receivable and distressed debt.