Frankly, a content, engagement and monetization platform for brands and media companies, agreed to a term sheet with Raycom Media under which Raycom will provide Frankly with a non-revolving term line of credit in the principal amount of $14.5 million and an additional available $1.5 million non-revolving line of credit.

Raycom also will convert $1 million of its existing $4 million promissory note to shares of Frankly common shares and Raycom’s 6,751,132 Class A restricted voting shares of Frankly will be converted on or prior to the closing date into common shares of Frankly.

The loan will have a five-year term and will be secured by the grant of a security interest in Frankly’s assets, a pledge of shares of Frankly’s subsidiaries and a guarantee by Frankly’s subsidiaries secured by their assets. Simultaneously, Frankly and Raycom will enter into a software code escrow agreement.

Interest on outstanding balances of the loan will accrue at a rate of 10% per annum, with a default interest rate of 12% per annum. Also, Frankly will grant Raycom warrants to acquire Frankly common shares in an amount equal to 40% of the outstanding principal balance of the loan up to $6.4 million.