On January 5, 2017, Radisys Corporation entered into the first amendment to the credit agreement with Silicon Valley Bank, as administrative agent, and the other lenders party thereto, which amends the Credit Agreement dated September 19, 2016 between Radisys, SVB, as administrative agent, and the other lenders party thereto. Borrowings under the credit agreement are subject to a borrowing base, which is a formula based upon certain eligible accounts receivable plus a non-formula amount if the company’s liquidity is above $20.0 million in any intraquarter month and $25.0 million for the last month of a fiscal quarter, measured as of the last day of the applicable month. The first amendment increases the borrowing availability by increasing the non-formula amount to $7.5 million (previously $5 million) and the advance rate attributable to certain foreign accounts receivable eligible under the borrowing base formula. The first amendment also amended the Credit Agreement to provide for non-formula advances during the last business day of any fiscal quarter, provided that Liquidity on the date of a requested non-formula advance must be greater than or equal to $40 million, the non-formula advance must be repaid on or before the first business day after the applicable fiscal quarter end, and subject to the satisfaction of certain other conditions. Additionally, the First Amendment adjusted the required minimum Consolidated Adjusted EBITDA that the company is required to maintain each quarter of fiscal year 2017. The first amendment also provided that following fiscal year 2017, SVB, as Administrative Agent, and the required lenders under the Credit Agreement will re-set the required minimum Consolidated Adjusted EBITDA levels for the periods tested in fiscal years 2018 and 2019. The First Amendment of the Credit Agreement also adjusted the rate per annum on or before March 31, 2017 and at any time thereafter when the Consolidated Adjusted EBITDA as measured on a trailing twelve-month basis for the immediately preceding fiscal quarter period is less than the Consolidated Adjusted EBITDA threshold as specified in the Credit Agreement to be as follows: when availability (as defined in the first amendment) is 70% or more, the interest rate is the prime rate (as published in wall street journal) plus 0.50%; when availability is 30% or more and less than 70%, the interest rate is the prime rate plus 0.75%; and when availability is below 30%, the interest rate is the prime rate plus 1.00%. After March 31, 2017 if Consolidated Adjusted EBITDA as measured on a trailing twelve-month basis for the immediately preceding fiscal quarter period is equal to or greater than the Consolidated Adjusted EBITDA threshold as specified in the Credit Agreement, the rate per annum will be as follows: when availability is 70% or more, the interest rate is the prime rate plus 0.25%; when availability is 30% or more and less than 70%, the interest rate is the prime rate plus 0.50%; and when availability is below 30%, the interest rate is the prime rate plus 0.75%.