Superior Drilling Products, Inc.: debt financing — Superior Drilling Products enters new $1.7M term loan and $750K revolver with Vast Bank

Superior Drilling Products, Inc.

Term loan of $1,719,200 at 8.18% fixed, matures July 2028; revolver up to $750K at prime+1% (min 7.5%), matures July 2025.
Proceeds repaid outstanding balance under prior Austin Financial Services credit agreement.
Also entered domestic ($2.5M face, 1.25% fee) and international ($2.0M face, 2.0% fee) receivables purchase programs.
CFO states new agreement extends maturities and offers more favorable terms, reflecting growing financial strength.

item 1.01 item 1.02 item 2.03 item 8.01 item 9.01

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

Superior Drilling Products, Inc. incurred term loan of $1,719,200 with Vast Bank, National Association at 8.18% maturing July 28, 2028.

Instrument: term loan
Principal: $1,719,200
Counterparty: Vast Bank, National Association
Rate: 8.18%
Maturity: July 28, 2028
Event: incurrence

Exact text from the filing

- Term Loan: $1,719,200 term loan (the “Term Loan”), which matures on July 28, 2028.

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

Superior Drilling Products, Inc. incurred revolving credit of $750,000 with Vast Bank, National Association at Prime plus 1.00% and (b) 7.50% maturing July 28, 2025.

Instrument: revolving credit
Principal: $750,000
Counterparty: Vast Bank, National Association
Rate: Prime plus 1.00% and (b) 7.50%
Maturity: July 28, 2025
Event: incurrence

Exact text from the filing

The Loan Agreement provides for loans through the following facilities (collectively, the “Loans”): - Revolving Line: The lesser of $750,000 or the borrowing base, which is as of a date is 50% of eligible inventory as calculated under the Loan Agreement (“Revolving Line”), which matures on July 28, 2025.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.98

Superior Drilling Products, Inc. entered into Loan Agreement with Vast Bank, National Association valued at $750,000 Revolving Line and $1,719,200 Term Loan (effective 2023-07-28).

Action: entry
Agreement: credit facility
Counterparty: Vast Bank, National Association
Value: $750,000 Revolving Line and $1,719,200 Term Loan
Effective: 2023-07-28

Exact text from the filing

On July 28, 2023, Superior Drilling Products, Inc. (the “Company”) entered into a Loan Agreement (the “Loan Agreement”) among Vast Bank, National Association, as lender (the “Lender”), and various subsidiaries of the Company as guarantors (the “Guarantors”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.94

Superior Drilling Products, Inc. entered into Amendment to Lease for Vernal, Utah facilities with Meier Properties, Series LLC valued at Tenant paid security deposit of approximately $80,000 in exchange for landlord lien waiver and colla (effective 2023-07-28).

Action: entry
Agreement: lease
Counterparty: Meier Properties, Series LLC
Value: Tenant paid security deposit of approximately $80,000 in exchange for landlord lien waiver and colla
Effective: 2023-07-28

Exact text from the filing

In connection with entering into the Loan Agreement, Meier Properties, Series LLC, a subsidiary of the Company, entered into an amendment (the “Amendment”) to the lease for the Company’s facilities in Vernal, Utah.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.99

Superior Drilling Products, Inc. terminated Loan and Security Agreement with Austin Financial Services, Inc. with Austin Financial Services, Inc. valued at Repaid in full and terminated (effective 2023-07-28).

Action: termination
Agreement: credit facility
Counterparty: Austin Financial Services, Inc.
Value: Repaid in full and terminated
Effective: 2023-07-28

Exact text from the filing

In connection with entering into the Loan Agreement, a portion of the proceeds of the Loans was used to repay in full the amounts outstanding under the revolving line of credit extended to the Company by Austin Financial Services, Inc. pursuant to the Loan and Security Agreement entered into in February 2019. As a result of such repayment, such Loan and Security Agreement was terminated.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Superior Drilling Products, Inc. entered into Business Manager Agreements with Vast Bank, National Association valued at Domestic up to $2,500,000 and international up to $2,000,000 accounts receivable purchase facilities (effective 2023-07-28).

Action: entry
Agreement: credit facility
Counterparty: Vast Bank, National Association
Value: Domestic up to $2,500,000 and international up to $2,000,000 accounts receivable purchase facilities
Effective: 2023-07-28

Exact text from the filing

In addition, in connection with entering into the Loan Agreement, the Company entered into Business Manager Agreements for the purchase by the Lender of certain domestic and international accounts receivable of the Company.

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Source: SEC EDGAR

accession 0001493152-23-026462

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