--- schema_version: "secwatch.filing_event.v1" accession: "0001104659-23-033355" form_type: "8-K" ticker: null cik: "0001839412" company_name: "QualTek Services Inc." filed_at: "2023-03-16T23:59:59+00:00" generated_at: "2026-06-18T00:58:59.578333+00:00" event_type: "debt" sentiment: "negative" materiality_score: 0.95 calibrated_materiality_score: 0.95 confidence: "high" source: SEC EDGAR --- # QualTek gets $55M costly financing; misses $3.7M interest; CEO non-renewal; appoints CRO ## Summary - $55M new money incremental term loans at SOFR+12% (1% cash pay, rest PIK); maturity June 16, 2024. - ABL facility cut from $130M to $105M at BSBY+5%; financial covenant waived for Q1-Q3 2023. - Failed to pay $3.7M interest on 2027 convertible notes; 30-day grace period; non-payment could accelerate ~$128.5M. - CEO Christopher Hisey gave non-renewal notice; remains CEO; Cari Turner (Alvarez & Marsal) appointed Chief Restructuring Officer. - Director Maha Eltobgy resigned; Emanuel Pearlman elected independent director; joins special committee for strategic alternatives. ## SEC filing metadata - accession: 0001104659-23-033355 - form_type: 8-K - cik: 0001839412 - company_name: QualTek Services Inc. - filed_at: 2023-03-16T23:59:59+00:00 - event_type: debt - sentiment: negative - materiality_score: 0.95 - calibrated_materiality_score: 0.95 - confidence: high - sec_items: 1.01, 2.03, 5.02, 7.01, 8.01, 9.01 - EDGAR index: https://www.sec.gov/Archives/edgar/data/1839412/000110465923033355/0001104659-23-033355-index.htm - EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1839412/000110465923033355/tm239631d1_8k.htm ## Machine-readable alternates - HTML: https://secwatch.observer/filing/0001104659-23-033355 - JSON: https://secwatch.observer/filing/0001104659-23-033355.json - Plain text: https://secwatch.observer/filing/0001104659-23-033355.txt ## Key facts - Debt Financings QualTek Services Inc. amended revolving credit of from $130 million to $105 million with PNC Bank, National Association at BSBY plus 5.00% maturing June 16, 2024. - Instrument: revolving credit - Principal: from $130 million to $105 million - Counterparty: PNC Bank, National Association - Rate: BSBY plus 5.00% - Maturity: June 16, 2024 - Event: amendment source text: The ABL Amendment provides for a reduction in the aggregate commitment from $130 million to $105 million, a modification of the interest rate to BSBY plus 5.00% and a modification of the maturity date of the ABL facility to be June 16, 2024. evidence_url: https://www.sec.gov/Archives/edgar/data/1839412/000110465923033355/0001104659-23-033355-index.htm - Debt Financings QualTek Services Inc. incurred term loan of $55 million with Citibank, N.A. at SOFR plus 12.0%, with a minimum cash pay requirement of SOFR plus 1.00% and the maturing June 16, 2024. - Instrument: term loan - Principal: $55 million - Counterparty: Citibank, N.A. - Rate: SOFR plus 12.0%, with a minimum cash pay requirement of SOFR plus 1.00% and the - Maturity: June 16, 2024 - Event: incurrence source text: The Term Loan Amendment provides for $55 million of immediately available new money incremental term loans under the existing term loan credit agreement. On March 16, 2023, the Company borrowed the full $55 million of new money incremental term loans. evidence_url: https://www.sec.gov/Archives/edgar/data/1839412/000110465923033355/0001104659-23-033355-index.htm - Executive change Emanuel R. Pearlman was elected as Director at QualTek Services Inc.. - Action: elected - Role: Director source text: On March 15, 2023, the Board elected Emanuel R. Pearlman as an independent director of the Company, effective immediately, to fill the vacancy created by Ms. Eltobgy’s resignation evidence_url: https://www.sec.gov/Archives/edgar/data/1839412/000110465923033355/0001104659-23-033355-index.htm - Executive change Maha Eltobgy resigned as Director at QualTek Services Inc.. - Action: resigned - Role: Director source text: On March 15, 2023, Maha Eltobgy, a member of the Board of Directors (the “Board”) of the Company, notified the Company that she was resigning from the Board, effective immediately. evidence_url: https://www.sec.gov/Archives/edgar/data/1839412/000110465923033355/0001104659-23-033355-index.htm - Material Agreements QualTek Services Inc. amended ABL Amendment with PNC Bank, National Association, as administrative agent and collateral agent valued at $130 million to $105 million (effective 2023-03-16). - Action: amendment - Agreement: credit facility - Counterparty: PNC Bank, National Association, as administrative agent and collateral agent - Value: $130 million to $105 million - Effective: 2023-03-16 source text: On March 16, 2023, QualTek Services Inc. (the “Company”), through its wholly-owned subsidiaries QualTek Buyer, LLC and QualTek LLC, entered into an amendment to each of (i) the Term Credit and Guaranty Agreement, dated as of July 18, 2018, among QualTek Buyer, LLC, QualTek LLC, certain subsidiaries of QualTek LLC and Citibank, N.A., as administrative agent and collateral agent (the “Term Loan Amendment”) and (ii) the ABL Credit and Guaranty Agreement, dated as of July 18, 2018, among QualTek Buyer, LLC, QualTek LLC, certain subsidiaries of QualTek LLC and PNC Bank, National Association, as administrative agent and collateral agent (the “ABL Amendment”). evidence_url: https://www.sec.gov/Archives/edgar/data/1839412/000110465923033355/0001104659-23-033355-index.htm - Material Agreements QualTek Services Inc. amended Term Loan Amendment with Citibank, N.A., as administrative agent and collateral agent valued at $55 million (effective 2023-03-16). - Action: amendment - Agreement: credit facility - Counterparty: Citibank, N.A., as administrative agent and collateral agent - Value: $55 million - Effective: 2023-03-16 source text: On March 16, 2023, QualTek Services Inc. (the “Company”), through its wholly-owned subsidiaries QualTek Buyer, LLC and QualTek LLC, entered into an amendment to each of (i) the Term Credit and Guaranty Agreement, dated as of July 18, 2018, among QualTek Buyer, LLC, QualTek LLC, certain subsidiaries of QualTek LLC and Citibank, N.A., as administrative agent and collateral agent (the “Term Loan Amendment”) evidence_url: https://www.sec.gov/Archives/edgar/data/1839412/000110465923033355/0001104659-23-033355-index.htm This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.