Inventure Foods,Inc. (NASDAQ:SNAK) Files An 8-K Entry into a Material Definitive Agreement

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Inventure Foods,Inc. (NASDAQ:SNAK) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.

General

Inventure Foods,Inc. (the “Company”) and certain of its subsidiaries (collectively with the Company, the “Borrowers”) today announced that it has entered into separate agreements with the lenders under its Credit Agreement, dated as of November18, 2015, by and among the Borrowers, the lenders from time to time a party thereto (the “BSP Lenders”), and BSP Agency, LLC, as the administrative agent (“BSP”) (as amended from time to time, the “Term Loan Credit Agreement”) and the lenders under its Credit Agreement, dated as of November18, 2015, by and among the Borrowers, the lenders from time to time a party thereto (the “Wells Fargo Lenders”), and Wells Fargo Bank, National Association, as the administrative agent (“Wells Fargo”) (as amended from time to time, the “ABL Credit Agreement”). These agreements, which are described in more detail below, granted the Company an extension of the temporary waiver of the requirement under each loan facility to deliver audited financial statements without a going concern opinion from July17, 2017 to August31, 2017 and, with respect to the Term Loan Credit Agreement, provided a temporary waiver of the financial covenants the Company was required to comply with under the Term Loan Credit Agreement until August31, 2017 (the “Term Loan Financial Covenant Default”). In addition, as discussed in more detail below, the Company has secured $5 million in additional financing from the BSP Lenders under its Term Loan Credit Agreement.

Benefit Street (BSP) Term Loan Credit Agreement

On July17, 2017, the Borrowers entered into a letter agreement with the BSP Lenders and BSP, which amended the Term Loan Credit Agreement. Under the terms of the BSP letter agreement, the BSP Lenders granted the Company (i)an extension of the temporary waiver of the requirement under the Term Loan Credit Agreement to deliver audited financial statements without a going concern opinion from July17, 2017 to July24, 2017, and (ii)a temporary waiver of the Term Loan Financial Covenant Default until July24, 2017.

On July20, 2017, the Company entered into a Limited Waiver and Fourth Amendment to Credit Agreement with the BSP Lenders and BSP, which further amended the Term Loan Credit Agreement (the “Fourth Amendment to Term Loan Credit Agreement”). Under the terms of the Fourth Amendment to Term Loan Credit Agreement, the BSP Lenders agreed to (i)a further extension of the temporary waiver of the requirement under the Term Loan Credit Agreement to deliver audited financial statements without a going concern opinion from July24, 2017 to August31, 2017, and (ii)a temporary waiver of the Financial Covenant Default until August31, 2017. In addition, the BSP Lenders agreed to provide $5 million of additional financing to the Company in the form of a term loan, payable in equal monthly installments of $12,500 commencing on September30, 2017, with the balance due and payable on November17, 2020, which is the maturity date of the Term Loan Credit Agreement. The net proceeds of this new $5 million loan will be used for working capital purposes, subject to certain restrictions in the Term Loan Credit Agreement.

Wells Fargo ABL Credit Agreement

On July17, 2017, the Borrowers entered into a Second Amendment to Credit Agreement (the “Wells Fargo Second Amendment”) with the Wells Fargo Lenders and Wells Fargo, which further amended the ABL Credit Agreement. Under the terms of the Wells Fargo Second Amendment, the Wells Fargo Lenders granted the Company an extension of the temporary waiver of the requirement under the ABL Credit Agreement to deliver audited financial statements without a going concern opinion from July17, 2017 to July24, 2017. In addition, the Wells Fargo Second Amendment provided for, among other things, additional reporting obligations, reduced the revolver commitment over a period of time, adjusted advance rates, and an extension of the temporary waiver of the requirement under the ABL Credit Agreement to deliver audited financial statements without a going concern opinion from July17, 2017 to July24, 2017.

On July20, 2017, the Borrowers entered into a Third Amendment to Credit Agreement (the “Wells Fargo Third Amendment”) with the Wells Fargo Lenders and Wells Fargo, which further amended the ABL Credit Agreement. Under the terms of the Wells Fargo Third Amendment, the Wells Fargo Lenders granted the Company an extension of the temporary waiver of the requirement under the ABL Credit Agreement to deliver audited financial statements without a going concern opinion from July24, 2017 to August31, 2017.

The foregoing descriptions of the BSP letter agreement, the Fourth Amendment to Term Loan Credit Agreement, the Wells Fargo Second Amendment, and the Wells Fargo Third Amendment do not purport to be complete and are qualified in their entirety by reference to the BSP letter agreement, the Fourth Amendment to Term Loan Credit Agreement, the Wells Fargo Second Amendment, and the Wells Fargo Third Amendment, respectively, copies of which are filed herewith as Exhibits 10.1 — 10.4, which are incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits.

TheExhibits List in the Index to Exhibits immediately following the pageof this Current Report on Form8-K is incorporated herein by reference as the list of exhibits required as part of this Item 9.01.

to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Inventure Foods,Inc.

(Registrant)

Date:

July21, 2017

/s/ Steve Weinberger

(
INVENTURE FOODS, INC. Exhibit
EX-10.1 2 a17-18224_1ex10d1.htm EX-10.1 Exhibit 10.1     BSP AGENCY,…
To view the full exhibit click here

About Inventure Foods,Inc. (NASDAQ:SNAK)

Inventure Foods, Inc. is a marketer and manufacturer of healthy/natural and indulgent specialty snack food brands. The Company operates in two segments: frozen products and snack products. The frozen products segment produces frozen fruits, vegetables, beverages and frozen desserts for sale primarily to groceries, club stores and mass merchandisers. The snack products segment produces potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products and extruded products for sale primarily to snack food distributors and retailers. The products sold under its snack products segment includes products considered part of the indulgent specialty snack food category, as well as products considered part of the healthy/natural food category. Its Frozen Products segment’s brands include Rader Farms, Jamba and Fresh Frozen. Its Snack Products segment’s brands include Boulder Canyon, Nathan’s Famous, T.G.I. Friday’s, Poore Brothers, Bob’s Texas Style and Vidalia.