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 August 12, 2019, Sequential Brands Group, Inc. and certain of its subsidiaries (“Sequential” or the “Company”) amended its Third Amended and Restated Credit Agreement (the “Amended KKR/FS Credit Agreement”) with Wilmington Trust, National Association, as administrative agent and collateral agent and the lenders party thereto. to the Amended KKR/FS Credit Agreement, no mandatory amortization payments are required until September 30, 2020. Thereafter, the loans under the Amended KKR/FS Credit Agreement will be subject to quarterly amortization payments of $1.0 million. to the Amended KKR/FS Credit Agreement, no payment with proceeds of any consolidated excess cash flow will be required to be made prior to the fiscal year ending December 31, 2020. The Amended KKR/FS Credit Agreement modifies the calculation of Consolidated EBITDA (as defined in the agreement) by permitting additional addbacks and specifying the EBITDA amounts for the quarters ended September 30, 2018, December 31, 2018, March 31, 2019 and June 30, 2019. The Amended KKR/FS Credit Agreement allows for the netting of up to $5 million in cash of the Company and its subsidiaries for purposes of calculating the leverage ratio covenants. The Amended KKR/FS Credit Agreement reduces the maximum amount of new indebtedness that is allowed to be borrowed under the Bank of America Revolving Credit Facility to $30 million.
The Second and Third Amended and Restated Credit Agreements are attached hereto as Exhibits 10.1 and 10.2 and are incorporated herein by reference. The foregoing description of the Amended KKR/FS Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full agreement attached hereto.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information included in Item 1.01 above is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
Exhibit Number Description