Global Power Equipment Group Inc (OTCMKTS:GLPW) filed Form 8-K wherein it updated on entry into a material definitive deal and, on the notice of delisting. The company previously updated that it finalized certain amendments to its Credit Deal, dated February 21, 2012, with National Association, Wells Fargo Bank, U.S. Bank National Association, and the numerous lending institutions party thereto.
Under the previous deal, the Lenders approved, among other things, to provisionally waive certain anticipated and existing events of default. Global Power finalized a Second Amendment to ‘Limited Waiver’ and also Seventh Amendment to Credit deal and changes to other loan documents, dated as of March 25, 2016.
Under the amendment to other loan documents, the Lenders accepted to provisionally waive some of the waiver termination events, the original recorded existing default events, additional known current events of default, certain events of default, and some of the anticipated default events for a limited period of time closing before May 15, 2016 or the incidence of any added waiver termination event.
The Lenders decided to continue making available revolving credit loans and release letters of credit to Global Power. However, during this period such form of lending will be liable to certain conditions. There will be certain caps be placed on the firm’s borrowing during this period. The Ninth Amendment changes the mandatory prepayment requirements of the Credit Agreement.
These provisions include a compulsory principal prepayment of $500,000 on March 25, 2016 as well as April 15, 2016regarding to the revolving credit loans. It provides for compulsory principal advance payment of the revolving credit mortgages and/or cash collateralization of the LOC requirements in the event that Global Power receives proceeds from debt issuances, equity issuances, and asset dispositions. Moreover, the Administrative Agent may need that all cash guarantees and all other proceeds and collections of collateral obtained by the firm or any Lender be placed directly to repay Global Power’s obligations under the Credit Deal.