secwatch / observer
8-K filed July 18, 2023, 7:59 PM ET CIK 0001762322
debt confidence high sentiment negative materiality 0.80

SHIFT TECHNOLOGIES, INC.: debt financing — Shift Technologies cuts Ally credit line from $75M to $30M, removes liquidity covenant

SHIFT TECHNOLOGIES, INC.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

SHIFT TECHNOLOGIES, INC. amended credit facility of reduced maximum available credit line from $75 million to $30 million with Ally Bank and Ally Financial Inc..

Instrument
credit facility
Principal
reduced maximum available credit line from $75 million to $30 million
Counterparty
Ally Bank and Ally Financial Inc.
Event
amendment
Exact text from the filing
the Lender. The Second Amendment amends the Ally Facility to, among other things, (i) reduce the maximum available credit line (the “ Credit Line ”) under the Ally Facility from $75 million to $30 million, (ii) eliminate the option for a Borrower to obtain financing from the Lender for vehicles for which Dealership does not then hold a lien-free title, and (iii)
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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

SHIFT TECHNOLOGIES, INC. amended Second Amendment to Inventory Financing and Security Agreement with Ally Bank and Ally Financial Inc. (effective 2023-07-14).

Action
amendment
Agreement
credit facility
Counterparty
Ally Bank and Ally Financial Inc.
Effective
2023-07-14
Exact text from the filing
On July 14, 2023, Shift Technologies, Inc. (the “ Company ”) entered into a Second Amendment to Inventory Financing and Security Agreement (the “ Second Amendment ”), by and among the Company, certain of the Company’s wholly owned subsidiaries (collectively, the “ Borrowers ” and each, a “ Borrower ”), Ally Bank (“ Ally Bank ”) and Ally Financial Inc. (“ Ally Financial ” and, together with Ally Bank, the “ Lender ”), which amends the Company’s existing Inventory Financing and Security Agreement dated as of December 9, 2021, as amended by the Amendment to Inventory Financing and Security Agreement dated as of February 7, 2023 (as so amended, the “ Ally Facility ”), by and among the Company, the Borrowers and the Lender.
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Source: SEC EDGAR
accession 0001213900-23-057879
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