Type 10-Q Quest Reference Carrying Corp. Revolving Credit Center

Type 10-Q Quest Reference Carrying Corp. Revolving Credit Center

Questionnaire [Sections 13 or 15(d)]

6. Records Payable

Revolving Credit Score Rating Center

On August 5, 2020, QRHC and certain of the home-based subsidiaries entered into financing, safety and Guaranty arrangement (the “BBVA Loan Agreement”) with BBVA USA, as a loan provider, so that as management representative, collateral agent, and providing financial, which supplies for a credit score rating center (the “ABL Facility”) comprising the following:

An asset-based revolving credit premises within the optimal major amount of $15.0 million with a sublimit for issuance of letters of credit score rating of up to 10% of optimal main amount of https://rapidloan.net/payday-loans-ok/ the revolving credit score rating establishment. Each financing according to the revolving credit score rating establishment bears interest, from the consumers’ option, at either the bottom Rate, in addition to the Applicable Margin, or even the LIBOR Lending rates for your Interest course in essence, in addition to the Applicable Margin, in each circumstances as identified within the BBVA financing arrangement. The readiness day associated with the revolving credit score rating establishment is August 5, 2025. The revolving credit score rating facility has an accordion feature permitting the revolving credit score rating center becoming increased by to ten bucks million.

a gear loan center during the optimum principal amount of $2.0 million. Financing within the devices financing establishment could be asked for whenever you want until August 5, 2023. Each financing beneath the equipment loan facility holds interest, at borrowers’ solution, at either the bottom Rate, plus 1.75per cent, or perhaps the LIBOR financing rates the Interest years essentially, plus 2.75%. The maturity date regarding the machines loan facility is August 5, 2025.

Select of QRHC’s home-based subsidiaries would be the borrowers underneath the BBVA Loan contract. QRHC and something of the residential subsidiaries are guarantors according to the BBVA mortgage Agreement. As protection for the requirements of the consumers underneath the BBVA Loan Agreement, (i) the borrowers beneath the BBVA Loan arrangement have granted a primary concern lien on significantly their tangible and intangible personal homes, including a pledge from the investment stock and membership interests, as relevant, of some of QRHC’s immediate and indirect subsidiaries, and (ii) the guarantors according to the BBVA financing contract posses issued a first consideration lien about investment inventory and account hobbies, as appropriate, of some of QRHC’s drive and secondary residential subsidiaries.

The BBVA mortgage arrangement has certain monetary covenants, such as the absolute minimum fixed cost insurance coverage proportion. And also, the BBVA Loan Agreement includes negative covenants restricting, among other things, additional indebtedness, purchases with affiliates, extra liens, purchases of assets, returns, financial investments and improvements, prepayments of debt, mergers and purchases, also material typically limited in such agreements. The BBVA financing arrangement also contains customary events of default, such as repayment non-payments, breaches of representations and warranties, covenant defaults, occasions of case of bankruptcy and insolvency, change of regulation, and problem of every guaranty or protection document giving support to the BBVA Loan contract to be in complete force and impact. Upon the event of a meeting of standard, the exceptional responsibilities underneath the BBVA financing contract is likely to be expidited and turn into immediately because of and payable.

The ABL center carries interest, at all of our option, at either the beds base price, as defined into the BBVA financing arrangement, plus a margin ranging from 0.75per cent to 1.25% (3.0percent at the time of September 30, 2020), or the LIBOR Lending rates when it comes to interest course in effect, plus a margin ranging from 1.75percent to 2.25% (no borrowings at the time of Sep 30, 2020).

Relating to the ABL establishment, we compensated BBVA United States Of America a fee of $50,000 and sustained more drive outlay of approximately $166,877, that are becoming amortized on top of the longevity of the ABL premises.

The BBVA mortgage Agreement replaced all of our financing, protection and Guaranty Agreement, dated at the time of February 24, 2017, with residents Bank, state Association (the “Citizens mortgage Agreement”), that was repaid and terminated successful August 5, 2020. We taped $167,964 in control on extinguishment of personal debt associated with this financing termination, including the write-off regarding the unamortized percentage of obligations issuance prices and charge immediately from the mortgage reward.