Revolution Lighting Technologies, Inc. Enters into Third Amendment to Forbearance Agreement and Seventeenth Amendment to Loan and Security Agreement
August 22, 2019 at 05:30 pm EDT
Share
On August 16, 2019, Revolution Lighting Technologies, Inc. (the Company) and its direct and indirect subsidiaries (collectively, the Obligors) entered into a Third Amendment to Forbearance Agreement and Seventeenth Amendment (the “Seventeenth Amendment”) to its loan and security agreement (the “Loan Agreement”) with Bank of America N.A. (“Bank of America”). Under the terms of the Seventeenth Amendment, Bank of America agreed to forebear, until January 26, 2020, the maturity date of the Loan Agreement, from exercising its rights and remedies as a result of breaches of certain covenants under the Loan Agreement, including the Company’s failure to deliver to Bank of America required financial statements and to comply with a minimum fixed charge coverage ratio covenant. If the Company is not able to obtain a further amendment of the Loan Agreement to extend the maturity date of the Loan Agreement beyond January 26, 2020, all principal, interest and other amounts outstanding under the Loan Agreement will become due and payable at 5 p.m. on January 26, 2020; in addition, such amounts may become due and payable upon the earlier occurrence of any Termination Event (as defined in the Loan Agreement, as previously amended). In the Seventeenth Amendment, Bank of America agreed to continue lending to the Company under the revolving credit facility provided by the Loan Agreement through January 26, 2020, subject to the Company continuing to comply with its obligations under the Seventeenth Amendment, including not allowing any additional Defaults or Events of Default (as defined in the Loan Agreement) to occur. Under the Seventeenth Amendment, Base Rate Revolver Loans (as defined in the Loan Agreement) shall have an interest rate equal to the Base Rate (as defined in the Loan Agreement) plus 3.25%, and LIBOR Revolver Loans (as defined in the Loan Agreement) shall have an interest rate equal to LIBOR plus 4.25%. Such interest rates may be reduced by 0.25% if the Company (i) meets certain field examination obligations and Bank of America receives an updated borrowing base certificate in substantial conformity with the results of such field examination and (ii) is not subject to any Default or Events of Default other than the defaults subject to forbearance in the Seventeenth Amendment. Such interest rates shall be increased by 0.25% if Bank of America determines that the delivery of any (i) financial report required by Exhibit E of the Loan Agreement, (ii) borrowing base certificate and/or (iii) Cash Flow Report (as defined in the Loan Agreement), is untimely and/or insufficient, with additional increases and/or fees to be implemented in the sole discretion of Bank of America if such situation is not rectified to the sole satisfaction of Bank of America within 15 days of notice thereof.
Revolution Lighting Technologies, Inc. designs, manufactures, markets and sells commercial grade light-emitting diode (LED) and conventional lighting fixtures. The Company operates in Lighting Products and Solutions (principally LED fixtures and lamps) segment. The Company's products are used for outdoor and indoor applications, LED-based signage, channel-letter and contour lighting products, LED replacement lamps and commercial grade smart grid control systems. It sells its LED products under the RVLT, Seesmart, Lumificient, Value Lighting, Array and CMG brand names. The Company's commercial lamps and fixtures products include the commercial indoor and outdoor lighting products, such as linear tube lighting, multi-family lighting, commercial troffer lighting and street lighting. It caters to municipal and commercial markets, which include industrial, hospitality, institutional, educational, healthcare and signage markets in the United States, Canada and internationally.