Item 1.01 Entry Into A Material Definitive Agreement.
On
The revolving loans under the Warehouse Facility will be used to finance the
purchase of Divvy charge card receivables. The Credit Agreement Amendment
provides for an increase in the borrowing capacity under the Warehouse Facility
from
The revolving loans under the Warehouse Facility bear interest at a rate per annum determined by reference to either the SOFR Rate or an Adjusted Benchmark Rate plus an Applicable Margin ranging from 2.65% to 2.75% based on the outstanding principal amount and the date that principal amounts are outstanding. The Warehouse Facility contains customary representations, warranties and ongoing affirmative and negative covenants and agreements. The negative covenants include, among other things, limitations on certain indebtedness, liens, investments, transactions with affiliates, and dividends and other restricted payments. The obligations under the Warehouse Facility are secured by receivables generated by the Company's Divvy charge card and certain related collateral.
The Warehouse Facility also contains customary events of default, which include, among other things, non-payment of principal, interest, fees and other amounts, material breach of a representation or warranty, non-performance of covenants and obligations, default on other material debt, bankruptcy or insolvency, material undischarged judgments, certain events related to plans subject to the Employee Retirement Income Security Act of 1974, as amended, and certain changes of control.
The foregoing description of the Warehouse Facility does not purport to be
complete and is qualified in its entirety by reference of the complete text
thereof, which will be filed as an exhibit to the Company's Quarterly Report on
Form 10-Q for the quarter ending
Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth above in Item 1.01 is incorporated herein by reference.
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