Item 1.01 Entry Into a Material Definitive Agreement.
On
Borrowings under the Credit Agreement are secured by substantially all of the
assets of the Company and its wholly-owned subsidiaries,
Under the Credit Agreement, the Company has the option to select an interest
rate based on either (1) a base rate, which fluctuates daily and is the greater
of (a) the prime rate in effect as of any date of determination and (b) the SOFR
rate as of such date of determination plus 1.0% per annum or (2) a SOFR rate,
which can be for a period of 30, 90 or 180 days at the Company's option and is
equal to the SOFR rate as published by
The Company is subject to certain financial covenants in the Credit Agreement, which include: (1) maintaining a ratio of consolidated funded debt, excluding the amount of any unsecured convertible notes issued by the Company, to consolidated earnings before income tax, depreciation and amortization ("Consolidated EBITDA") of not greater than 3.00 to 1.00 measured at the end of each fiscal quarter and (2) maintaining a ratio of Consolidated EBITDA to interest charges of at least 2.00 to 1.00 measured at the end of each fiscal quarter.
The Credit Agreement contains various negative covenants that limit, subject to certain exclusions, the Company's ability to incur indebtedness, make loans, invest in or secure the obligations of other parties, pay or declare dividends, make distributions with respect to the company's securities, redeem outstanding shares of the Company's stock, create subsidiaries, materially change the nature of its business, enter into related party transactions, engage in mergers and business combinations, the acquisition or transfer of Company assets outside of the ordinary course of business, grant liens or enter into collateral relationships involving company assets or reincorporate, reorganize or dissolve the Company.
The Credit Agreement also contains customary indemnification obligations and customary events of default, including, but not limited to, failure to timely make payments when due under the Credit Agreement, failure to comply with any of the covenants under the Credit Agreement or any other loan document, the occurrence of certain insolvency or bankruptcy-related events, cross-default to certain other indebtedness, entry of certain judgments against the Company which are not discharged or stayed and the occurrence of a "change of control" (as defined in the Credit Agreement).
The foregoing description of the Amendment is not intended to be complete and is
qualified in its entirety by reference to the Amendment attached as Exhibit 10.1
hereto. The foregoing description of the Credit Agreement is not intended to be
complete and is qualified in its entirety by reference to the credit agreement,
attached as Exhibit 10.1 to the Company's 10-Q filed on
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information contained in Item 1.01 above with respect to entry into the Credit Agreement is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit Description Number 10.1 Fifth Amendment to Credit Agreement betweenUmpqua Bank andShotSpotter, Inc. datedNovember 22, 2022 . 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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