Singing Machine obtains waiver of credit defaults; adds new liquidity and cash flow covenants

Algorhythm Holdings, Inc.

Fifth Third Bank waived existing defaults for Nov 2022–Feb 2023 fixed charge coverage violations.
New minimum Liquidity (Excess Availability + cash) set at $2.5M–$4M through July 2024.
Minimum Operating Cash Flow covenant ranges from $(750k) to $(3.55M) for Feb–Aug 2023.
Equity cure right available up to $500k per 365-day period, max 4 times total, for covenant breaches.
Company paid a $10,000 waiver and amendment fee upon execution.

Key facts

Extracted from this filing and checked against the source text.

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

Algorhythm Holdings, Inc. amended Revolving Loan Amendment with Fifth Third Bank, National Association (effective 2023-05-19).

Action: amendment
Agreement: credit facility
Counterparty: Fifth Third Bank, National Association
Effective: 2023-05-19

Exact text from the filing

On May 19, 2023, The Singing Machine Company, Inc. (the “Company”) and its wholly-owned subsidiary, SMC Logistics, Inc. (“SMC”), entered into a Waiver and First Amendment (the “Revolving Loan Amendment) to that certain Credit and Security Agreement (the “Credit Agreement”) with Fifth Third Bank, National Association, (“Fifth Third”), dated as of October 14, 2022.

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Algorhythm Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001493152-23-019127

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