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

Summary

Under section 4003(b)(3) of the CARES Act, the U.S. Department of the Treasury agreed to lend $2,519,200 to SpinLaunch, Inc., according to this transaction summary, which calls the Company a business critical to maintaining national security with approximately 66 U.S. employees in March 2020. Security for the loan is all the assets of the Company; the annual rate is LIBOR plus 3.5%, and maturity falls on November 13, 2025. SpinLaunch may draw the proceeds in a single draw through November 30, 2020. The agreement binds the Company to restrictions on employee compensation, stock repurchases, dividends and reductions in employment levels, and the senior loan carries 3% payment-in-kind annual interest for Treasury.

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Cite this document

“U.S. Department of the Treasury: SpinLaunch, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-spinlaunch-transaction-summary-0275720210/, SHA-256 50673c2c622972baffe25fad452a654bf2347abe9c5aedb705e2af6dd7bc4bc5.

Full text

                                     Transaction Summary

The U.S. Department of the Treasury agreed to make a loan totaling $2,519,200 to SpinLaunch,
Inc. (the Company), a business critical to maintaining national security with approximately 66
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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TREAS-SpinLaunch-Transaction-Summary.pdf
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TREAS-SpinLaunch-Transaction-Summary.pdf
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home.treasury.gov
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