RADISYS CORPORATION (NASDAQ:RSYS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
entered into the First Amendment to the Credit Agreement (the
“First Amendment) with Silicon Valley Bank (SVB), as
administrative agent, and the other lenders party thereto, which
amends the Credit Agreement (the “Credit Agreement”) dated
September 19, 2016 between Radisys, SVB, as administrative agent,
and the other lenders party thereto.
base, which is a formula based upon certain eligible accounts
receivable plus a non-formula amount if the Companys Liquidity
(as defined in the Credit Agreement) is above $20.0 million in
any intraquarter month and $25.0 million for the last month of a
fiscal quarter, measured as of the last day of the applicable
month. The First Amendment increases the borrowing availability
by increasing the non-formula amount to $7.5 million (previously
$5 million) and the advance rate attributable to certain foreign
accounts receivable eligible under the borrowing base formula.
The First Amendment also amended the Credit Agreement to provide
for non-formula advances during the last business day of any
fiscal quarter, provided that Liquidity on the date of a
requested non-formula advance must be greater than or equal to
$40 million, the non-formula advance must be repaid on or before
the first business day after the applicable fiscal quarter end,
and subject to the satisfaction of certain other conditions.
Consolidated Adjusted EBITDA (as defined in the First Amendment)
that the Company is required to maintain each quarter of fiscal
year 2017. The First Amendment also provided that following
fiscal year 2017, SVB, as Administrative Agent, and the required
lenders under the Credit Agreement will re-set the required
minimum Consolidated Adjusted EBITDA levels for the periods
tested in fiscal years 2018 and 2019.
rate per annum on or before March 31, 2017 and at any time
thereafter when the Consolidated Adjusted EBITDA as measured on a
trailing twelve-month basis for the immediately preceding fiscal
quarter period is less than the Consolidated Adjusted EBITDA
threshold as specified in the Credit Agreement to be as follows:
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When Availability (as defined in the First Amendment) is
70% or more, the interest rate is the prime rate (as published in Wall Street Journal) plus 0.50%; |
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When Availability is 30% or more and less than 70%, the
interest rate is the prime rate plus 0.75%; and |
|
When Availability is below 30%, the interest rate is the
prime rate plus 1.00%. |
on a trailing twelve-month basis for the immediately preceding
fiscal quarter period is equal to or greater than the
Consolidated Adjusted EBITDA threshold as specified in the Credit
Agreement, the rate per annum will be as follows:
|
When Availability is 70% or more, the interest rate is the
prime rate plus 0.25%; |
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When Availability is 30% or more and less than 70%, the
interest rate is the prime rate plus 0.50%; and |
|
When Availability is below 30%, the interest rate is the
prime rate plus 0.75%. |
to be complete and is qualified in its entirety by reference to
the full text of the First Amendment, which is attached to this
report as Exhibit 10.1 and is incorporated herein by reference.
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Exhibit Number
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Description
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10.1
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First Amendment to the Credit Agreement, dated January
5, 2017, between Radisys Corporation, as borrower, Silicon Valley Bank, as administrative agent, and the other lenders party thereto. |
About RADISYS CORPORATION (NASDAQ:RSYS)
Radisys Corporation (Radisys) is a services acceleration company. The Company’s application aware traffic distribution platforms, real-time media processing products and wireless access technologies enable service providers to virtualize and monetize their networks. The Company’s products and services are organized into two segments: Software-Systems, and Embedded Products and Hardware Services. The Company’s Software-Systems segment consists of three product families: FlowEngine, MediaEngine and CellEngine. Also included in the Software-Systems segment is its Professional Service organization. The Company’s Embedded Products and Hardware Services segment provides customers with hardware based products targeted at the communications and healthcare markets. Products within this segment fall under primary categories, including T-Series Advanced Telecommunications Computing Architecture (ATCA) Platforms, Component Object Model (COM) Express and Rackmount Servers, and Other Products. RADISYS CORPORATION (NASDAQ:RSYS) Recent Trading Information
RADISYS CORPORATION (NASDAQ:RSYS) closed its last trading session up +0.11 at 4.71 with 89,319 shares trading hands.
