NTN BUZZTIME, INC. (NYSEMKT:NTN) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
On February 28, 2017, we entered into a third amendment to the
loan and security agreement that we entered into with East West
Bank (EWB) on April 14, 2015. The following is a summary of the
amendments to the loan and security agreement effected by the
third amendment:
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The date on which the $2.0 million sublimit becomes $0 was extended from March 31, 2017 to June 15, 2017. As was the case prior to the third amendment, if the aggregate amount of advances as of June 15, 2017 exceeds the lesser of the revolving line or the amount equal to our borrowing base, then we must pay EWB the amount of such excess. |
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The minimum adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, targets for each of our 2017 fiscal quarters were established. The way adjusted EBITDA is calculated was not changed. |
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Compliance with the churn rate target is now measured only on trailing three-month basis; previously it was also measured monthly. |
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The amount we must maintain on deposit with EWB (which amount is equal to 100% of the aggregate outstanding principal amount of advances) is now measured only at June 15, 2017, or if earlier, at such time that the $2.0 million sublimit has been paid off. Previously, compliance was going to be measured on March 31, 2017 and thereafter we were going to be required to maintain an amount determined by EWB based on our 2017 financial projections. |
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The interest rates on amounts advanced was increased by 0.50%, such that under the third amendment, advances bear interest, at our option, at the rate of either of the following: (A) for amounts advanced as a prime rate loan, a variable rate per annum equal to the prime rate as set forth in The Wall Street Journal plus 3.25% (was previously 2.75%), and (B) for amounts advanced as a LIBOR loan, at a fixed rate per annum equal to the LIBOR rate for the interest period for the advance plus 6.00% (was previously 5.50%). After the earlier of June 15, 2017 (was previously March 31, 2017) or such time we pay off in full in cash the $2.0 million sublimit, the additional margins decrease to 1.75% for prime rate loans (was previously 1.25%) and to 4.50% for LIBOR loans (was previously 4.00%). |
The foregoing summary description of the third amendment does not
purport to be complete and is qualified in its entirety by
reference to the third amendment, a copy of which is filed as
Exhibit 10.1 hereto and is incorporated herein by reference.
Item 8.01 Other Events
Investors, our customers, the media, business partners and others
should note that we currently announce material information to
the public using SEC filings, press releases, public conference
calls and webcasts. We use these channels as well as social media
to announce information about our company, key personnel, new
products and services, trends, new marketing campaigns, corporate
initiatives and other issues.
In light of SEC guidance regarding the use of social media
channels to announce material information to investors, we are
notifying investors, our customers, the media, business partners
and others that, in the future, we might choose to communicate
certain information via social media channels, and it is possible
that the information we post on social media channels could be
deemed to be material information. Therefore, we encourage
investors, our customers, the media, business partners and others
interested in our company to review the information we post on
the U.S. social media channels listed below:
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Buzztime Websites (https://www.buzztime.com and https://www.buzztime.com/business) |
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| Buzztime Facebook Page (https://www.facebook.com/buzztime) | ||
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Buzztime Twitter Feeds (https://twitter.com/buzztime and https://twitter.com/BuzztimeBiz) |
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| LinkedIn: (https://www.linkedin.com/company-beta/16184) |
Any updates to the list of social media channels we will use to
communicate material information will be posted on the Investor
Relations page of our website at
www.buzztime.com/business/investor-relations.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | ||
| 10.1 |
Third Amendment to the Loan and Security Agreement by and between East West Bank and NTN Buzztime, Inc. dated February 28, 2017. |
About NTN BUZZTIME, INC. (NYSEMKT:NTN)
NTN Buzztime, Inc., formerly Alroy Industries, delivers entertainment and dining technology to bars and restaurants in North America. The Company provides an entertainment and marketing services platform for hospitality venues that offers games, events, and entertainment experiences to their customers. Its customers offer guests trivia, card, sports and arcade games, nationwide competitions, and self-service dining features, including dynamic menus, touchscreen ordering and secure payment by licensing the Company’s customizable solution. Its platform creates connections among the players and venues. Its network subscriber venues are related to national and regional restaurant brands, including Buffalo Wild Wings, Old Chicago, Beef O’Brady’s, Aroogas, Buffalo Wings & Rings, Native New Yorker and Boston Pizza. Its entertainment system enables players to interact at the venue, and it also enables competition between venues, referred to as multiplayer gaming. NTN BUZZTIME, INC. (NYSEMKT:NTN) Recent Trading Information
NTN BUZZTIME, INC. (NYSEMKT:NTN) closed its last trading session down -0.02 at 5.80 with 6,277 shares trading hands.