INVACARE HOLDINGS Corp: restructuring charge — Invacare secures $14M additional borrowing, waives covenants, and plans restructuring

INVACARE HOLDINGS Corp

Third Amendment to Loan and Security Agreement provides $14M initial draw and up to $10M delayed draws; margin increases to 8.0%.
Financial covenants modified: fixed charge coverage ratio and minimum cash tests removed; waiver for late Q3 2023 financials granted.
Restructuring to streamline North American operations expects $8M annual pre-tax savings; approximately $1M severance charges in Q2 2024.
Upon CF Transition Date, lenders to exchange Series A preferred for Series B preferred and warrants, subject to term loan and convertible note conditions.
Stockholders approved Certificate of Designations amendment and Master Equity Agreement via written consent on April 8, 2024.

item 1.01 item 2.03 item 2.05 item 3.02 item 5.03 item 5.07 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Governance Changes SEC 8-K Item 5.03/5.05/5.06 confidence 0.9

INVACARE HOLDINGS Corp: Amended Certificate of Designations for Series A Convertible Participating Preferred Stock to revise definitions and scope/timing of delivery of financial statements to holders (effective 2024-04-08).

Change: charter amendment
Effective: 2024-04-08

Exact text from the filing

On April 8, 2024, in connection with the Third Amendment, the Company, with the consent of the stockholders required thereby, amended the Certificate of Designations of the Company for its 9.00% Series A Convertible Participating Preferred Stock (the “ Second Amendment to the Certificate of Designations ”), to among other things amend certain definitions contained therein and amend the scope and timing of delivery of certain financial statements with respect to the Company to the holders of the Parent Series A Preferred Stock.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

INVACARE HOLDINGS Corp amended Third Amendment to the Loan and Security Agreement with White Oak Commercial Finance, LLC (effective 2024-04-08).

Action: amendment
Agreement: credit facility
Counterparty: White Oak Commercial Finance, LLC
Effective: 2024-04-08

Exact text from the filing

On April 8, 2024, Invacare Holdings Corporation (the “ Company ”) entered into the Third Amendment to the Loan and Security Agreement (the “ Third Amendment ”) by and among the Company, certain of the Company’s direct and indirect North American subsidiaries (the “ ABL Borrowers ”), certain other of the Company’s direct and indirect North American subsidiaries (together with the Company, the “ ABL Guarantors ”), Invacare International Holdings Corp. (“ Intermediate Holdings ”), each lender party thereto (collectively, the “ Lenders ”), and White Oak Commercial Finance, LLC, as administrative and as collateral agent (the “ Agent ”).

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

INVACARE HOLDINGS Corp announced a restructuring with charges of approximately $1 million affecting North America.

Type: restructuring
Charge: approximately $1 million
Affected area: North America

Exact text from the filing

to headcount reductions. As a result, the Company anticipates annual pre-tax savings of approximately $8 million. The Company will incur restructuring charges of approximately $1 million and expects to make cash payments in the same amount, primarily related to severance costs expected to be paid out over the second quarter of 2024. As it has done for the past

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Source: SEC EDGAR

accession 0000742112-24-000023

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