secwatch.observer — SEC 8-K summary
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Issuer:     ENGLOBAL CORP (—)
CIK:        0000933738
Form:       8-K
Filed at:   2024-04-25T23:59:59+00:00
Accession:  0001654954-24-005027
Event type: debt
Sentiment:  neutral
Materiality: 0.50
Item codes: 1.01, 2.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

ENGlobal amends credit agreement with related-party lender; extends term loans to July 2025, adds $1M revolver
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- Modifies existing $1.2M term loans: maturity extended to July 2, 2025, interest rate reduced from 8.5% to 8.0%.
- Adds a revolving credit line up to $1M (subject to borrowing base of 95% eligible receivables) at 12.0% interest.
- Accrued unpaid interest (~$72K) and origination fees ($6K) added to term loan principal on closing.
- Lender Alliance 2000, Ltd. is controlled by CEO William A. Coskey; transaction approved by Audit Committee and disinterested board members.
- Mandatory prepayment of term loans if equity or debt capital raised exceeds $2M; revolving credit secured by receivables.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/933738/000165495424005027/0001654954-24-005027-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/933738/000165495424005027/eng_8k.htm
  HTML page:      https://secwatch.observer/filing/0001654954-24-005027

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