EVERQUOTE, INC. : Entering into a Material Definitive Agreement, Creating a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant (Form 8-K)
Section 1.01 Entering into a Material Definitive Agreement.
Under the amended loan agreement, borrowings under the revolving line of credit may not exceed 85% of eligible debtor balances and bear interest at the greater of 4.25% or prime rate. In addition, the term loan will bear interest at the prime rate plus 0.25%. In the event of default, as defined in the amended loan agreement, and until such event no longer occurs, the interest rate to be charged would be the rate otherwise applicable to borrowings under the modified loan plus 5.00%.
Borrowings under the Revolving Line of Credit under the Amended Loan Agreement are repayable in interest-only monthly installments until the Loan Maturity Date, which is
Borrowings are secured by substantially all of the Company’s assets and property. Under the Amended Loan Agreement, the Company has agreed to positive and negative covenants to which the Company will remain subject until maturity. Covenants include limits on the Company’s ability to incur additional debt and engage in certain fundamental business transactions, such as mergers or acquisitions of other businesses. In addition, under the Amended Loan Agreement and by
The Company’s obligations under the Amended Loan Agreement are subject to acceleration upon the occurrence of specified events of default, including payment defaults, insolvency events, breach of covenants and material adverse events relating to, among other things, the business, operations, assets or condition.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under a
Off-balance sheet arrangement of a registrant.
The information set forth in Section 1.01 of this Current Report on Form 8-K regarding the Amended Loan Agreement is incorporated by reference into this Section 2.03.
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