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

Summary

A U.S. Department of the Treasury transaction summary for a loan totaling $1,999,100 to Semahtronix, LLC, described as a business critical to maintaining national security with approximately 172 U.S. employees in March 2020. Treasury made the loan under section 4003(b)(3) of the CARES Act; the loan is secured by all the assets of the Company, bears interest at LIBOR plus 3.5% and matures on November 13, 2025. The Company may draw the proceeds in a single draw through November 30, 2020, and the proceeds will be used to provide liquidity. Covenants restrict employee compensation, stock repurchases, dividends and reductions in employment levels, and Treasury will receive 3% payment-in-kind annual interest under section 4003(d).

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“U.S. Department of the Treasury: Semahtronix, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-semahtronix-transaction-summary-32de7341b9/, SHA-256 d346e920943da2b7d5b814f3ad08cfb4ec2d10dc1d7642eaa4aaaf0fe5700bea.

Full text

                                     Transaction Summary

The U.S. Department of the Treasury agreed to make a loan totaling $1,999,100 to Semahtronix,
LLC (the Company), a business critical to maintaining national security with approximately 172
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 13, 2025. The
Company may draw the loan proceeds in a single draw through November 30, 2020. 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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