ALLIANCE ENTERTAINMENT HOLDING CORP (AENT): debt financing — Alliance Entertainment closes $4M public offering and secures $17M credit line from chairman

ALLIANCE ENTERTAINMENT HOLDING CORP

Alliance Entertainment closed public offering of 1,335,000 shares at $3.00/share for $4M gross proceeds; underwriter has 45-day option for 200,250 additional shares.
Proceeds to be used for working capital and general corporate purposes, including paying accounts payable from initial business combination.
Executive Chairman Bruce Ogilvie provided up to $17M line of credit at BSBY+3% to address $10M reserve and fund holiday inventory; expected repayment by July 31, 2023.
Class A common stock and warrants began trading on Nasdaq Capital Market on June 30, 2023 under symbols AENT and AENTW, upgraded from OTC.
Underwriter received warrants for 50,090 shares at $3.75; lock-up agreements for existing stockholders and directors for 90 days.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

ALLIANCE ENTERTAINMENT HOLDING CORP incurred credit facility of $17 million with Bruce Ogilvie at Bloomberg Overnight Short Term Bank Yield Index (BSBY) rate plus 3% per annum maturing expected to be repaid from cash flow on or prior to July 31, 2023.

Instrument: credit facility
Principal: $17 million
Counterparty: Bruce Ogilvie
Rate: Bloomberg Overnight Short Term Bank Yield Index (BSBY) rate plus 3% per annum
Maturity: expected to be repaid from cash flow on or prior to July 31, 2023
Event: incurrence

Exact text from the filing

On July 3, 2023, Bruce Ogilvie, the Company’s Executive Chairman, extended a line of credit in an amount of up to $17 million to the Company (the “Loan”). The purpose of the Loan is to address a $10 million availability reserve imposed on the Company’s existing credit facility by the lenders and to fund product investments for the upcoming holiday season. The Loan has no specified terms, but is expected to be repaid from cash flow on or prior to July 31, 2023. The Company has agreed to pay interest on the Loan at a rate equal to the Bloomberg Overnight Short Term Bank Yield Index (BSBY) rate plus 3% per annum, with interest calculated on a daily basis.

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

ALLIANCE ENTERTAINMENT HOLDING CORP entered into Underwriting Agreement with ThinkEquity LLC valued at $4,005,000 (effective 2023-06-29).

Action: entry
Agreement: underwriting
Counterparty: ThinkEquity LLC
Value: $4,005,000
Effective: 2023-06-29

Exact text from the filing

On July 5, 2023, Alliance Entertainment Holding Corporation (the “Company”) sold an aggregate of 1,335,000 shares of the Company’s Class A common stock, par value $0.0001 per share (“Class A Common Stock”) at a public offering price to the public of $3.00 per share (the “Offering”), pursuant to an Underwriting Agreement, dated as of June 29, 2023 (the “Underwriting Agreement”), by and between the Company and ThinkEquity LLC (the “Representative” or “ThinkEquity”), as representative of the underwriters of the Offering (the “Underwriters”).

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88 debt financings filed in the last 30 days. Browse all debt financings →

ALLIANCE ENTERTAINMENT HOLDING CORP filing history →

Source: SEC EDGAR

accession 0001104659-23-078774

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