XCEL BRANDS, INC. (NASDAQ:XELB) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
| Entry into a Material Definitive Agreement. |
| Item 2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off- Balance Sheet Arrangement of a Registrant |
On February 24, 2017, XCel Brands, Inc. (XCel) and its
wholly-owned subsidiaries (each a Guarantor and collectively, the
Guarantors), entered into Amendment No. 1 and Waiver to Amended
and Restated Loan and Security Agreement (the Amendment and,
together with the Amended and Restated Loan Agreement obtained
February 26, 2016, the Loan Agreement) with Bank Hapoalim, B.M.
(the Bank), as agent, and the financial institutions party
thereto as lenders (the Lenders).
to the Loan Agreement, the prepayment schedule was revised to
purchase that principal on the remaining $24,250,000 balance of
principal due under the term loan shall be payable commencing on
February 24, 2017 and, thereafter, in quarterly installments on
each of April 1, July 1, October 1 and January 1 as follows:
| Period | Amount |
| February 24, 2017 | $250,000 |
| April 1, 2017-October 1, 2017 | $1,250,000 |
| January 1, 2018-October 1, 2018 | $1,000,000 |
| January 1, 2019-October 1, 2019 | $1,000,000 |
| January 1, 2020-October 1, 2020 | $1,000,000 |
; with the remaining unpaid balance due and payable onJanuary 1,
2021
to the Amendment, among other things, the Bank also waived the
requirement for Xcel (on a consolidated basis with its
subsidiaries and any subsidiaries subsequently formed or acquired
that becomes a credit party under the Loan Agreement) to achieve
EBITDA (as defined in the Loan Agreement) of not less than
$9,500,000 for the fiscal year ended December 31, 2016.
| Item 9.01 | Financial Statements and Exhibits |
| (d) | Exhibits |
| 10.1 |
Amendment No. 1 and Waiver to Amended and Restated Loan and Security Agreement by and among Bank Hapoalim B.M., as agent, the financial institution party thereto as lenders, XCel Brands, Inc. and IM Brands, LLC, JR Licensing, LLC, H Licensing, LLC, C Wonder Licensing LLC, XCel Design Group, LLC, IMNY Retail Management. LLC. IMNY E-Store USA, LLC, as guarantors |
About XCEL BRANDS, INC. (NASDAQ:XELB)
Xcel Brands, Inc. is a brand development and media company. The Company is engaged in the design, production, licensing, marketing, and direct to consumer sales of branded apparel, footwear, accessories, jewelry, home goods, and other consumer products, and the acquisition of consumer lifestyle brands. The Company’s brand portfolio consists of the Isaac Mizrahi, Judith Ripka, H Halston, C Wonder and Highline Collective brands. The Company also manages and designs the Liz Claiborne New York brand (LCNY Brand). Isaac Mizrahi has over 150 different product categories, including sportswear, footwear, handbags, watches, eyewear, fragrance, tech accessories, intimates, bridal gowns and accessories, pet products, home and other merchandise. The Company’s Judith Ripka is a luxury jewelry brand. Wonder brand offers women’s clothing, footwear, jewelry and accessories; housewares, and home decor and gifts. The Liz Claiborne New York includes women’s apparel, footwear, outerwear and accessories. XCEL BRANDS, INC. (NASDAQ:XELB) Recent Trading Information
XCEL BRANDS, INC. (NASDAQ:XELB) closed its last trading session down -0.35 at 4.40 with 27,792 shares trading hands.
