SEQUENTIAL BRANDS GROUP, INC. (NASDAQ:SQBG) Files An 8-K Entry into a Material Definitive Agreement

SEQUENTIAL BRANDS GROUP, INC. (NASDAQ:SQBG) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

On June 17, 2021, Sequential Brands Group, Inc. (“Sequential” or the “Company”) entered into a waiver (the “Waiver”) under its Third Amended and Restated First Lien Credit Agreement, dated as of July 1, 2016 (as amended, restated or otherwise modified from time to time, the “Amended BOA Credit Agreement”), with Bank of America, N.A. (“BoA”), as administrative agent and collateral agent, and the lenders party thereto.  The Waiver, among other matters, waives any and all existing defaults and/or events of default related to the Company’s (i) failure to deliver quarterly financial statements for the period ended March 31, 2021 (the “Quarterly Financial Statements”), (ii) failure to deliver a quarterly compliance certificate for the period ended March 31, 2021(the “Quarterly Compliance Certificate”) and (iii) failure to comply with the Loan to Value Ratio Covenant based on the most recent appraisal conducted on behalf of BoA and received by the Company on June 11, 2021, in each case, until June 24, 2021. The Company and BoA are negotiating terms and conditions of an additional waiver related to the events of default. BoA and the required lenders had previously waived events of default under the Amended BOA Credit Agreement related to the Company’s failure to deliver the Quarterly Financial Statements and the Quarterly Compliance Certificate until June 8, 2021, which such waiver was subsequently extended until June 15, 2021. Wilmington Trust, National Association and the required lenders had previously waived events of default under the Third Amended and Restated Credit Agreement, dated as of July 1, 2016, among the Company, certain subsidiaries of the Company party thereto, Wilmington Trust, National Association, as administrative agent and collateral agent, and the lenders party thereto, related to the Company’s failure to deliver the Quarterly Financial Statements and the Quarterly Compliance Certificate until June 8, 2021, which such waiver was subsequently extended until June 21, and thereafter until July 8, 2021. The Waiver is attached hereto as Exhibit 10.1 and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number Description
 
10.1 Waiver to Amended BOA Credit Agreement, dated as of June 17, 2021, between Sequential Brands Group, Inc., Bank of America, N.A., as administrative agent and collateral agent, and the lenders party thereto.
 


Sequential Brands Group, Inc. Exhibit
EX-10.1 2 tm2120060d1_ex10-1.htm EXHIBIT 10.1   Exhibit 10.1   June 17,…
To view the full exhibit click here

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About SEQUENTIAL BRANDS GROUP, INC. (NASDAQ:SQBG)

Sequential Brands Group, Inc. owns a portfolio of consumer brands in the fashion, home, athletic and lifestyle categories. The Company’s portfolio of consumer brands includes Martha Stewart, Emeril Lagasse, Jessica Simpson, Joe’s Jeans, William Rast, Ellen Tracy, Revo, AND1 and Avia. The Company’s brands are licensed for a range of product categories, including apparel, footwear, eyewear, fashion accessories and home goods. The Company licenses brands to both wholesale and direct-to-retail licensees. The Company licenses the Martha Stewart brand to various licensees, including retailers, such as Macy’s, The Home Depot, PetSmart and Staples. The Jessica Simpson Collection is a signature lifestyle concept designed in collaboration with Jessica Simpson, which offers various product categories, including footwear, apparel, fragrance, fashion accessories, maternity apparel, girls clothing and a home line. The Avia brand offers running and activewear products.

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