Item 1.01. Entry into a Material Definitive Agreement.
On
The Credit Agreement and other loan documents contain customary representations
and warranties, affirmative, and negative covenants, including without
limitation, those covenants governing indebtedness, liens, fundamental changes,
restricting certain payments including dividends unless certain conditions are
met, transactions with affiliates, investments, engaging in business other than
the current business of the Borrowers and business reasonably related thereto,
and sale/leaseback transactions. The Credit Agreement and other loan documents
also contain customary events of default including, without limitation, payment
default, material breaches of representations and warranties, breach of
covenants, cross-default on material indebtedness, certain bankruptcies, certain
ERISA violations, material judgments, change in control, termination or
invalidity of any guaranty or security documents, and defaults under other loan
documents. The obligations under the Credit Agreement and other loan documents
are secured by substantially all of the assets of the Borrowers as collateral
including, without limitation, their accounts and notes receivable, intellectual
property and the real estate owned by
The Company utilized the proceeds of the Senior Credit Facility (i) first to pay off its existing credit agreement with Truist, (ii) second, to pay off its existing term loan with Truist, and (iii) third, to pay transaction fees and expenses incurred in connection with closing the transactions described above. The Company intends to utilize the proceeds of any loans made under the Senior Credit Facility for working capital, required letters of credit, and general corporate purposes in accordance with the terms of the Senior Credit Facility.
The foregoing summary of the Senior Credit Facility and the transactions contemplated thereby is qualified in its entirety by reference to the text of such agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated by reference herein.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The description of the Senior Credit Facility and the transactions contemplated thereby under Item 1.01 above is incorporated by reference herein in its entirety.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit No. Description 10.1 Loan Agreement dated as ofFebruary 28, 2023 , is amongBank of America, N.A . andHireQuest, Inc. and Subsidiaries
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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