Digerati Technologies, Inc. (DTGI): debt financing — Digerati extends Post Road forbearance to Nov 2024; secures $2M revolver

Digerati Technologies, Inc.

Third Forbearance Agreement extends Post Road loan maturity to Nov 17, 2024; forbearance on existing defaults.
Principal balance owed to Post Road approx. $41.279M; amendment fee of 3% added to principal.
New $2M revolving credit facility with Thermo Communications Funding; interest at prime+2.75% (floor 10.50%).
Financial covenants reset: minimum liquidity $750k, fixed charge ratio 1.25x, max churn 3.0%; EBITDA/leverage covenants removed.
Convertible note holders extend payments to Dec 31, 2024; warrants for 14M shares exchanged for 8.16M common shares.

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

Digerati Technologies, Inc. amended credit facility of approximately $41,279,000 with Post Road Administrative LLC maturing November 17, 2024.

Instrument: credit facility
Principal: approximately $41,279,000
Counterparty: Post Road Administrative LLC
Maturity: November 17, 2024
Event: amendment

Exact text from the filing

giving effect to the amendment fee, the principal balance owed by the Verve Cloud Nevada Parties to Post Road and its affiliates, as of February 2, 2024, was approximately $41,279,000. The foregoing summary of the Third Forbearance Agreement contains only a brief description of the material terms of the Third Forbearance Agreement and such description is

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

Digerati Technologies, Inc. incurred revolving credit of $2,000,000 with Thermo Communications Funding, LLC at the Wall Street Journal prime rate (currently 8.50%) plus 2.75%.

Instrument: revolving credit
Principal: $2,000,000
Counterparty: Thermo Communications Funding, LLC
Rate: the Wall Street Journal prime rate (currently 8.50%) plus 2.75%
Event: incurrence

Exact text from the filing

certain other provisions of the Post Road Credit Agreement and the related promissory notes, which amendments include, without limitation, (a) permitting incurrence of up to $2,000,000 of new indebtedness under the Revolving Credit Facility (as defined and further described below), (b) providing that all interest otherwise due under the Post Road Credit

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

Digerati Technologies, Inc. entered into Revolving Credit Agreement with Thermo Communications Funding, LLC valued at $2,000,000 (effective 2024-02-02).

Action: entry
Agreement: credit facility
Counterparty: Thermo Communications Funding, LLC
Value: $2,000,000
Effective: 2024-02-02

Exact text from the filing

On February 2, 2024, the Verve Cloud Nevada Parties entered into a loan and security agreement (the “Revolving Credit Agreement”) among the Verve Cloud Nevada Parties, Thermo Communications Funding, LLC, as agent for the lenders parties thereto

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

Digerati Technologies, Inc. amended Third Forbearance Agreement with Post Road Administrative LLC and Post Road Special Opportunity Fund II LP valued at approximately $41,279,000 (effective 2024-02-02).

Action: amendment
Agreement: credit facility
Counterparty: Post Road Administrative LLC and Post Road Special Opportunity Fund II LP
Value: approximately $41,279,000
Effective: 2024-02-02

Exact text from the filing

Post Road Administrative LLC and its affiliate Post Road Special Opportunity Fund II LP (collectively, “Post Road”), entered into a Third Forbearance Agreement and Amendment to Loan Documents (the “Third Forbearance Agreement”)

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

Digerati Technologies, Inc. filing history →

Source: SEC EDGAR

accession 0001213900-24-011691

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