ALJ Regional Holdings, Inc. Announces Management Changes; Announces Amendment to Term Loan and Credit Facility
ALJ entered into the Fifth Amendment (the "Fifth Amendment") to the Financing Agreement, dated as of August 14, 2015 (as amended and restated from time to time, the "Financing Agreement"), by and among the Company, Faneuil, Carpets, Phoenix, each subsidiary of the Company listed as a "Guarantor" on the signature pages thereto, the lenders from time to time party thereto, Cerberus, as collateral agent for the lenders (the "Collateral Agent"), and PNC Bank, National Association, as administrative agent for the lenders (the "Administrative Agent"). The Fifth Amendment was entered into by the Company in order to support the continued growth of the Company and the associated increase in cash capital expenditures for Faneuil's buildout of three new customer call centers to support anticipated increased contract awards. The Fifth Amendment included, among other amendments, the following: The creation of a seasonal revolver facility with $7.5 million in availability; An increase in the size of the capital expenditure basket allocated for the buildout of three new customer call centers at Faneuil from $15.0 million to $18.5 million; An increase in the leverage ratio threshold from 3.50:1.00 to 3.75:1.00 for the fiscal quarters ended September 30, 2019 and December 31, 2019; and Updates to certain definitions, representations and warranties to allow for the Acquisition.