TechTarget, Inc. (NASDAQ:TTGT) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry Into a Material Definitive Agreement.
On July 2, 2020, TechTarget, Inc. (the “Company”) entered into a Loan and Security Modification Agreement (“Modification Agreement”) with Western Alliance Bank (“Western Alliance”) to which the Company and Western Alliance agreed to amend the Loan and Security Agreement, dated December 24, 2018, (“Loan Agreement”) between the Company and Western Alliance. The Modification Agreement, among other things, adds or amends certain definitions in the Loan Agreement, adds a financial covenant requiring the Company to maintain an Asset Coverage Ratio (as defined in the Loan Agreement) of no less than 1.0 to 1.0 tested as of the end of each quarter, and provides the Company with a new revolving line of credit facility of $20,000,000 (“Line of Credit”). The Line of Credit allows the Company to request non-formula advances in an aggregate principal amount not to exceed the Line of Credit and to use the proceeds of such advances until the facility matures on July 2, 2022. Advances under the Line of Credit bear interest at a floating rate equal to one-quarter percent (0.25%) above the Prime Rate (as published in the Money Rates section of the Western Edition of The Wall Street Journal, or such other rate of interest publicly announced from time to time by Western Alliance as its Prime Rate); provided that at no time shall the interest rate on such advances be less than three and one half percent (3.50%). The Modification Agreement also establishes a process by which the Company and Western Alliance will determine an alternative interest rate for the Company’s existing Term Loan under the Loan Agreement in the event that Western Alliance determines that LIBOR ceases to exist or is no longer available. In addition, the Company will be required to pay customary fees and expenses, including an annual facility fee with respect to the Line of Credit.
The Loan Agreement and Line of Credit have been guaranteed by the Company and are secured by substantially all assets of the Company and its subsidiaries.
The description above is qualified in its entirety by the Modification Agreement, which is included as Exhibit 10.2 and is incorporated by reference herein.
Item 2.03. Creation of a Direct Financing Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
Please see the discussion set forth under Item 1.01, “Entry into a Material Definitive Agreement,” of this Form 8-K, which discussion is incorporated herein by reference in its entirety.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
TechTarget Inc Exhibit
EX-10.2 2 ttgt-ex102_14.htm EX-10.2 ttgt-ex102_14.htm Exhibit 10.2 LOAN AND SECURITY MODIFICATION AGREEMENT This Loan and Security Modification Agreement is entered into as of July 2,…
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About TechTarget, Inc. (NASDAQ:TTGT)
TechTarget, Inc. provides online content that helps buyers and sellers of corporate information technology (IT) products and services. The Company’s offerings enable IT vendors to identify, reach and influence corporate IT decision makers researching specific IT purchases through customized marketing programs that include data analytics-driven intelligence solutions, demand generation and brand advertising. Its Websites focuses on IT sectors, such as storage, security or networking and for decision support information. Its content enables IT professionals to navigate the IT landscape where purchasing decisions can have financial and operational consequences. Its marketing opportunities and audience extensions are addressed using approximately nine distinct media groups, including Application Architecture and Development; Channel; CIO/IT Strategy; Data Center and Virtualization Technologies; Business Applications and Analytics; Networking; Security; Storage, and TechnologyGuide.