XCel Brands, Inc. (XELB): debt financing — Xcel Brands subsidiary enters $5M term loan with Israel Discount Bank, maturing 2028

XCel Brands, Inc.

Term loan of $5M at Term SOFR + 4.25% (swap fixes at 9.46% per annum), matures Oct 19, 2028.
Quarterly principal payments of $250K start Apr 1, 2024; prepayment permitted.
Commitment fee of $50K and legal fees of $82K paid at closing; proceeds for fees and working capital.
Financial covenants: minimum royalty ratio 1.15x (2023-2024), fixed charge coverage ratio ≥1.10x, and $250K minimum cash.
Security granted on substantially all assets of H Halston IP and H Licensing, excluding trademarks; Xcel pledges membership interests.

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

XCel Brands, Inc. incurred term loan of $5,000,000 with Israel Discount Bank of New York at Term SOFR plus 4.25% per annum maturing October 19, 2028.

Instrument: term loan
Principal: $5,000,000
Counterparty: Israel Discount Bank of New York
Rate: Term SOFR plus 4.25% per annum
Maturity: October 19, 2028
Event: incurrence

Exact text from the filing

Agreement (the “Loan Agreement”) with Israel Discount Bank of New York (the “Lender”). Pursuant to the Loan Agreement, the Lender made a term loan in the aggregate amount of $5,000,000 (the “Term Loan”). The proceeds of the Term Loan were used to pay fees, costs and expenses incurred in connection with entering into the Loan Agreement, and may be used for

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Source: SEC EDGAR

accession 0001558370-23-016578

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