U.S. Department of the Treasury: Channel Logistics, "Transaction Summary"

Summary

A Treasury transaction summary stating that the U.S. Department of the Treasury agreed to lend $2,500,000 to Channel Logistics, LLC, a business critical to maintaining national security with approximately 6 U.S. employees in March 2020. Treasury made the loan under section 4003(b)(3) of the CARES Act, secured by all the assets of the Company. The loan has an annual interest rate equal to LIBOR plus 3.5%, matures on November 12, 2025, and was funded in full at close. Treasury will receive 3% payment-in-kind annual interest under section 4003(d).

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“U.S. Department of the Treasury: Channel Logistics, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-channel-logistics-transaction-summary-9dc906fdbd/, SHA-256 7b1755e17e5a6cc1e10c8c1437e898867c29dbbc9dff28cb442d94f91b86cf98.

Full text

                                    Transaction Summary

The U.S. Department of the Treasury agreed to make a loan totaling $2,500,000 to Channel
Logistics, LLC (the Company), a business critical to maintaining national security with
approximately 6 U.S. employees in March 2020.

Treasury made the loan pursuant to section 4003(b)(3) of the Coronavirus Aid, Relief, and
Economic Security (CARES) Act. The loan is secured by all the assets of the Company. It has
an annual interest rate equal to LIBOR plus 3.5% and matures on November 12, 2025. Treasury
funded the full loan amount at close. The loan proceeds will be used to provide liquidity to
continue the Company’s operations. The transaction agreement includes covenants by the
Company to comply with certain restrictions on employee compensation, stock repurchases,
dividends, and reductions in employment levels, as required by the CARES Act. The loan
constitutes senior indebtedness of the Company, and Treasury will receive 3% payment-in-kind
annual interest on the loan in accordance with section 4003(d) of the CARES Act.

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File: TREAS-Channel-Logistics-Transaction-Summary.pdf
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SHA-256: 7b1755e17e5a6cc1e10c8c1437e898867c29dbbc9dff28cb442d94f91b86cf98
Our copy: TREAS-Channel-Logistics-Transaction-Summary.pdf
Original: home.treasury.gov