Item 1.01 Entry into a Material Definitive Agreement.
On April 13, 2020, Emmis Operating Company (the "Borrower"), a wholly owned
subsidiary of Emmis Communications Corporation (the "Company"), was granted a
loan (the "Loan") from STAR Financial Bank in the aggregate amount of $4.753
million, pursuant to the Paycheck Protection Program (the "PPP") under Division
A, Title I of the CARES Act, which was enacted March 27, 2020.
The Loan, which was in the form of a Promissory Note dated April 13, 2020 issued
by the Borrower, matures on April 13, 2022 and bears interest at a rate of 1.0%
per annum, payable monthly commencing on November 13, 2020. The Note may be
prepaid by the Borrower at any time prior to maturity with no prepayment
penalties. Funds from the Loan may only be used for payroll costs, costs used to
continue group health care benefits, mortgage payments, rent, utilities, and
interest on other debt obligations incurred before February 15, 2020. The
Company intends to use as much of the Loan amount as possible for qualifying
expenses. Under the terms of the PPP, certain amounts of the Loan may be
forgiven if they are used for qualifying expenses as described in the CARES
Act. A copy of the Promissory Note is attached hereto as Exhibit 10.1 and
incorporated herein by reference
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
Reference is made to the disclosure under Item 1.01 above which is incorporated
in this Item 2.03 by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
10.1 Promissory Note from Emmis Operating Company to STAR Financial Bank,
dated April 13, 2020.
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