IMedia Brands, Inc. and its Subsidiaries Enter into Loan and Security Agreement with Siena Lending Group LLC and the Other Lenders Party
August 05, 2021 at 06:21 am EDT
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On July 30, 2021, iMedia Brands, Inc. (the ‘Company’) and certain of its subsidiaries, as borrowers, entered into a loan and security agreement (the ‘Loan Agreement’) with Siena Lending Group LLC and the other lenders party thereto from time to time, Siena Lending Group LLC, as agent (the ‘Agent’), and certain additional subsidiaries of the Company, as guarantors thereunder. The Loan Agreement has a three-year term and provides for up to a $80 million revolving line of credit. Subject to certain conditions, the Loan Agreement also provides for the issuance of letters of credit in an aggregate amount up to $5,000,000 which, upon issuance, would be deemed advances under the revolving line of credit. Proceeds of borrowings shall be used to refinance all indebtedness owing to PNC Bank, National Association, to pay the fees, costs, and expenses incurred in connection with the Loan Agreement and the transactions contemplated thereby, for working capital purposes, and for such other purposes as specifically permitted pursuant to the terms of the Loan Agreement. The Company’s obligations under the Loan Agreement are secured by substantially all of its assets and the assets of its subsidiaries as further described in the Loan Agreement. Subject to certain conditions, borrowings under the Loan Agreement bear interest at 4.50% per annum in excess of the London interbank offered rate for deposits in dollars (‘LIBOR’) for a period of 30 days as published in The Wall Street Journal three business days prior to the first day of each calendar month, or 0.50% per annum, whichever is greater or, if LIBOR is no longer available, a successor rate to be chosen by the Agent in consultation with the Company or a base rate. The Loan Agreement contains customary representations and warranties and financial and other covenants and conditions, including, among other things, minimum liquidity requirements of not less than $7,500,000 as of the end of any fiscal month and a maximum senior net leverage ratio of not less than 2.50:1.00 as of the last day of each fiscal quarter. In addition, the Loan Agreement places restrictions on the Company’s ability to incur additional indebtedness or prepay existing indebtedness, to create liens or other encumbrances, to sell or otherwise dispose of assets, to merge or consolidate with other entities, and to make certain restricted payments, including payments of dividends to shareholders. The Company also pays a monthly fee at a rate equal to 0.50% per annum of the average daily unused amount of the credit facility for the previous month.
Legacy IMBDS, Inc., formerly iMedia Brands, Inc., is a global media company. It owns and operates four television networks, which are ShopHQ, ShopBulldogTV, ShopHQHealth and 123tv. Its flagship network, ShopHQ is a multiplatform interactive television network offering a balanced assortment of name brands to consumers in an engaging and informative shopping environment via television, online and mobile. 123tv is the interactive media company disrupting Germanyâs television retailing marketplace with its Dutch auction style live and automated auctions that engages consumers with 123tvâs balanced merchandising mix of compelling products shipped directly to their homes. Bulldog is a menâs shopping and lifestyle television network offering menâs merchandise, entertainment and services. ShopHQHealth is a Health and Wellness focused network that offers an assortment of products and services to address the physical, spiritual, and mental health needs of its customers and their families.