Item 1.01 Entry into a Material Definitive Agreement.
On
The amount advanced by Veritex for each eligible loan is based on the unpaid
principal balance of the loan, the loan-to-value ratio of the loan and the FICO
score of the borrower and ranges from 80.00% to 92.50% depending on the type of
loan and the aforementioned criteria. The interest rate on any outstanding
balance under the Facility Documents is the greater of (1) the sum of (A)
one-month LIBOR and (B) 2.30%, and (2) 3.13%.
The obligations of the Borrowers under the Facility Documents are guaranteed by
the Company pursuant to a Guaranty Agreement (the "Guaranty") executed
contemporaneously with the Facility Documents. In addition, the Company is
subject to various financial and other covenants, including, as of the last day
of any fiscal quarter: (1) the Company's tangible net worth must be at least
equal to
In addition, the Facility Documents contain events of default (subject to certain materiality thresholds and grace periods), including payment defaults, breaches of covenants and/or certain representations and warranties, cross-defaults, bankruptcy or insolvency proceedings and other events of default customary for this type of transaction. The remedies for such events of default are also customary for this type of transaction and include acceleration of the principal amount outstanding under the Facility Documents and Veritex's right to liquidate the collateral then subject to the Facility Documents.
The Borrowers are also required to pay certain customary fees to Veritex and to reimburse Veritex for certain costs and expenses incurred in connection with Veritex's management and ongoing administration of the Veritex Facility Line.
A copy of the Loan and Security Agreement is attached hereto as Exhibit 10.1 and incorporated herein by reference. A copy of the Promissory is attached hereto as Exhibit 10.2 and incorporated herein by reference. A copy of the Guaranty is attached hereto as Exhibit 10.3 and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information required by Item 2.03 contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
--------------------------------------------------------------------------------
Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description Exhibit 10.1 Loan and Security Agreement among Angel Oak Mortgage OperatingPartnership, LP ,Angel Oak Mortgage REIT TRS, LLC ,Angel Oak Mortgage Fund TRS and Veritex Community Bank, dated August 1 6 , 2021
Exhibit 10.2 Promissory Note by
Exhibit 10.3 Guaranty Agreement by
in favor of
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
--------------------------------------------------------------------------------
© Edgar Online, source