Form 8-K for CONCURRENT COMPUTER CORP/DE
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20-Dec-2007
Entry into a Material Definitive Agreement, Creation of a Direct Fina
Item 1.01. Item Entry into a Material Definitive Agreement.
On December 19, 2007, Concurrent Computer Corporation, a Delaware corporation (the "Company" or the "Registrant"), entered into a First Amendment to Amended and Restated Loan and Security Agreement (the "Amendment") with Silicon Valley Bank (the "Bank"), which amends certain terms of the existing Amended and Restated Loan and Security Agreement (the "Credit Agreement"). The Amendment provides the Company an opportunity to extend the maturity date of the Credit Agreement from December 23, 2008 to July 1, 2009, should the Company so desire. The Amendment also resets the Company's Minimum Tangible Net Worth covenant requirement from $15,172,000 as of September 30, 2007, under the previous terms, to $10,000,000 as of December 31, 2007. At all times after December 31, 2007, the minimum tangible net worth requirement shall increase by 50% of quarterly net income and 50% of issuances of equity, net of issuance costs, and the principal amount of any subordinated debt. The Amendment also allows the Company to maintain a monthly average balance of not less than $1,000,000 in deposits in its operating accounts with the Bank, rather than a daily $1,000,000 minimum balance under the previous terms.
All other terms of the existing Credit Agreement remain the same, whereby the Bank provides for a $10,000,000 revolving credit line with a borrowing base dependent upon the Company's outstanding accounts receivable (the "Revolver") and is secured by substantially all of the assets of the Company. In addition, the Credit Agreement contains certain financial covenants, in addition to the minimum tangible net worth, and customary restrictive covenants concerning the Company's operations. |
