Eros STX Global : Senior Credit Agreement - Form 6-K

Published: 2021-10-12 06:22:27 ET ESGC

Senior Credit Agreement

On October 7, 2021, STX Filmworks, LLC, a Delaware limited liability company (the "Borrower") and wholly owned indirect subsidiary of Eros STX Global Corporation (the "Company"), entered into an amendment to the Second Amended and Restated Credit, Security, Guaranty and Pledge Agreement, dated as of October 7, 2016 (as amended, the "Credit Agreement"), among the Borrower, STX Filmworks, Inc., a Delaware corporation (the "Parent"), the guarantors referred to in the Credit Agreement, the lenders referred to in the Credit Agreement, and JPMorgan Chase Bank, N.A., as Administrative Agent for the lenders and as Issuing Bank to, among other things:

extend the maturity date of the Credit Agreement to November 5, 2021, with incremental default interest of 2% per year accruing on the unpaid amount of the obligations thereunder as of October 7, 2021, which interest will be forgiven if commitments are paid in full prior to the maturity date;

further extend the required delivery date for the audited consolidated financial statements of the Parent and its consolidated for the fiscal year ended March 31, 2021 (the "2020-2021 Audited Financials") to November 5, 2021;

further extend the required delivery date for the unaudited consolidated financial statements of the Parent and its consolidated subsidiaries for the fiscal quarter ended June 30, 2021 (the "June 2021 Financials") to November 5, 2021; and

remove the ability to borrow against cash in the future and permanently reduce the total commitments under the Credit Agreement by $10 million.

As of October 7, 2021, $134.5 million remained outstanding under the Credit Agreement, following the repayment of $14 million in loans under the Credit Agreement in connection with the amendment.

The Company is continuing to engage in negotiations to finalize a possible transaction to repay the Credit Agreement as disclosed in the Company's press release on August 3, 2021. There can be no assurance, however, that the Company will be able to negotiate acceptable terms or to reach any agreement with respect to any such transaction.

Mezzanine Facility

On October 7, 2021, the Parent, entered into an amendment to the Second Amended and Restated Subordinated Credit, Security, Guaranty and Pledge Agreement (as amended, the "Mezzanine Facility"), dated October 7, 2016, by and among the Parent, the Borrower, Red Fish Blue Fish, LLC, as administrative agent , the lenders from time to time party to the Mezzanine Facility and the guarantors referred to therein to, among other things

further extend the required delivery date for the 2020-2021 Audited Financials to November 5, 2021,

further extend the required delivery date for the June 2021 Financials to November 5, 2021; and

accrue incremental default interest of 2% per year on the unpaid amount of the obligations under the Mezzanine Facility as of October 7, 2021, which interest will be forgiven if commitments are paid in full prior to the maturity date.

As of October 7, 2021, $23.2 million remained outstanding under the Mezzanine Facility, after the payment of the interest amount that would have been due on October 20, 2021. The Mezzanine Facility is set to mature on July 7, 2022.

Disclaimer

ErosSTX Global Corp. published this content on 12 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 October 2021 10:21:06 UTC.