Kaspien Holdings Inc. (NASDAQ: KSPN) (“Kaspien” or the “Company”), a leading e-commerce marketplace growth platform, announced that it has entered into an amended loan agreement with Eclipse Business Capital LLC (“Eclipse,” f/k/a Encina Business Credit, LLC or “Encina”). On February 20, 2020, the Company previously entered into a loan agreement with Encina for up to $25 million in loans under a three-year, secured revolving credit facility.
Under the terms of the amended agreement, Kaspien will have additional flexibility to execute on its long-term business initiatives. Updated terms include but are not limited to extending the credit facility maturity date to February 20, 2024 with early termination fees being reset, reducing the LIBOR floor to 1.00%, allowing up to $4.0 million in acquisitions without consent, assuming certain preconditions are met, and allowing up to $5.6 million in aggregate principal amount of subordinated indebtedness to be prepaid.
In conjunction with the amendment to the loan agreement, the Company amended its subordinated loan agreement to extend the maturity date to March 31, 2024.
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“This amended credit facility provides us with a more favorable financing structure that better aligns our capital sources with our growth goals,” said Kaspien CEO Kunal Chopra. “We are committed to helping businesses of all sizes grow online, and to using our comprehensive platform of software and tech-enabled services to guide our partners through the increasingly complex landscape of digital marketplaces.
Across our business, we will continue to offer the software, technology, and know-how to support more marketplaces, expand to new geographies, and layer new business models on top of our existing platform. We appreciate Eclipse’s support in recognizing our improved financial condition and their flexibility to update this loan agreement.”
For additional details regarding the amended agreement, please reference the Form 8-K filed with the U.S. Securities and Exchange Commission on September 20, 2021.
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