Item 1.01. Entry into a Material Definitive Agreement.
On
The replacement of the Existing Credit Agreement with the Credit Agreement provides the Company with increased financing capacity and liquidity to fund its operations and implement its strategic plans.
The Credit Agreement provides for a five-year
The Credit Agreement is secured by a first lien security interest in substantially all of the Company's and its subsidiaries' assets.
Borrowings under the Credit Agreement are permitted in the form of LIBOR or
prime rate-based loans and generally bear interest at floating rates plus an
applicable margin determined by reference to the Company's availability under
the Credit Agreement. Among other fees, the Company is required to pay an annual
facility fee of
The Credit Agreement includes a springing minimum fixed cost coverage ratio of
1.0 to 1.0 when excess availability under the Credit Facility falls below the
greater of
The Credit Agreement also contains customary events of default and other covenants, including certain restrictions on the Company's ability to incur additional indebtedness, consolidate or merge, enter into acquisitions, pay any dividend or distribution on the Company's stock, redeem, retire or purchase shares of the Company's stock, make investments or pledge or transfer assets. If an event of default under the Credit Agreement occurs and is continuing, then the Lender may cease making advances under the Credit Agreement and declare any outstanding obligations under the Credit Agreement to be immediately due and payable. In addition, if the Company becomes the subject of voluntary or involuntary proceedings under any bankruptcy or similar law, then any outstanding obligations under the Credit Agreement will automatically become immediately due and payable.
The foregoing description of the Credit Agreement is qualified in its entirety by reference to the full text of the Credit Agreement, which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.
2
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Item 1.02. Termination of a Material Definitive Agreement.
On
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information disclosed above under Item 1.01 is incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
On
Item 9.01(d) Financial Statements and Exhibits.
Exhibit 10.1* Loan and Security Agreement dated as ofDecember 29, 2020 amongOrion Energy Systems, Inc. ,Bank of America, N.A ., as lender, and the subsidiary borrowers party thereto. Exhibit 99.1 Press Release ofOrion Energy Systems, Inc. * The schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The Registrant agrees to furnish a copy of all omitted exhibits and schedules to theSEC upon its request; provided, however, that the Registrant may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act, as amended, for any schedule so furnished.
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