According to a related 8-K filing, the annual interest rates applicable to amounts outstanding are for base rate loans, a base rate or for LIBOR loans, a base rate plus 2.0% per annum. In addition, the commitment fee on the undrawn portion of the facility and the letter of credit fee on undrawn stated amounts under letters of credit issued by the lenders are 0.40% per annum and 2.0% per annum, respectively.
The facility has a term from June 9, 2017 to June 9, 2019.
The credit facility is secured by substantially all of the company’s and the guarantors’ assets, other than the assets of Gulf Marine Fabricators, which are currently held for sale, and all real estate of the company and the guarantors.
The company must comply with the following financial covenants each quarter during the term of the facility:
- Ratio of current assets to current liabilities of not less than 1.25:1.00
- Minimum tangible net worth requirement of at least the sum of $230 million plus an amount equal to 50% of consolidated net income for each fiscal quarter ending after June 30, 2017, plus 100% of all net proceeds of any issuance of any stock or other equity after deducting of any fees, commissions, expenses and other costs incurred in such offering
- Ratio of funded debt to tangible net worth of not more than 0.50:1.00
In conjunction with the company’s entrance into the Whitney facility, the company terminated its credit agreement with JPMorgan Chase Bank as administrative agent. At the time of the termination, there was approximately $4.6 million of letters of credit outstanding, all of which was cash collateralized by the company upon termination.