AgileThought, Inc.: debt financing — AgileThought defaults on interest payment and liquidity covenant; lenders impose post-default rate

AgileThought, Inc.

Company notified lenders it will miss March 31, 2023 interest payment under Financing Agreement, triggering event of default.
Company not in compliance with $2M minimum liquidity covenant under Financing Agreement after March 24, 2023.
Interest payment default and accounts payable covenant breach cause cross-default under Credit Agreement.
Lenders increased interest rate to post-default rate (2% above) effective March 25, 2023.
Company in discussions for forbearance and evaluating recapitalization options; no assurance of success.

item 2.04

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.7

AgileThought, Inc. reported a default on credit facility with GLAS AMERICAS LLC and GLAS USA LLC.

Instrument: credit facility
Counterparty: GLAS AMERICAS LLC and GLAS USA LLC
Event: default

Exact text from the filing

On April 3, 2023, the Company also notified the Credit Agreement Collateral Agent and the Credit Agreement Administrative Agent that (i) the Interest Payment Event of Default constitutes a cross-default under the Credit Agreement, and (ii) the Credit Agreement Loan Parties will not be in compliance with their obligation under the Credit Agreement not to permit any such Credit Agreement Loan Party or its subsidiaries to have any accounts payable that are more than 60 days past due in an aggregate amount greater than or equal to, at any time after March 24, 2023 but on or prior to April 15, 2023, $3,600,000, which constitutes an event of default under the Credit Agreement.

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

AgileThought, Inc. reported a default on credit facility with Blue Torch Finance LLC at post-default rate, which is 2% in excess of the interest rate otherwise applicab.

Instrument: credit facility
Counterparty: Blue Torch Finance LLC
Rate: post-default rate, which is 2% in excess of the interest rate otherwise applicab
Event: default

Exact text from the filing

interest on the loans under the Financing Agreement (i) will, based on previously disclosed defaults, continue to be calculated at the alternative reference rate, which is payable monthly, instead of SOFR, which had a three month interest period, and (ii) will accrue from and after March 25, 2023 at the post-default rate, which is 2% in excess of the interest rate otherwise applicable to loans under the Financing Agreement.

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Source: SEC EDGAR

accession 0001790625-23-000026

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