U.S. Department of the Treasury: Thomas Global Systems, "Transaction Summary"
Summary
Treasury agreed to lend $1,400,000 to Thomas Global Systems LLC, a wholly owned subsidiary of Thomas Global Systems Inc., under section 4003(b)(1) of the CARES Act, according to this transaction summary. The Company is described as a repair station with approximately 20 U.S. employees in March 2020. Accounts receivable secure the loan, which bears interest at LIBOR plus 3.5%, matures on November 7, 2025 and may be drawn in a single draw through November 23, 2020. The loan is senior indebtedness, with 3% payment-in-kind annual interest to Treasury under section 4003(d) and covenants restricting employee compensation, stock repurchases, dividends and reductions in employment levels.
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“U.S. Department of the Treasury: Thomas Global Systems, ‘Transaction Summary.’”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-thomas-global-systems-transaction-summa-db90b5f5f5/
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Transaction Summary The U.S. Department of the Treasury agreed to make a loan totaling $1,400,000 to Thomas Global Systems LLC (the Company), a wholly owned subsidiary of Thomas Global Systems Inc. The Company is a repair station with approximately 20 U.S. employees in March 2020. Treasury made the loan pursuant to section 4003(b)(1) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loan is secured by accounts receivable. It has an interest rate equal to LIBOR plus 3.5% and matures on November 7, 2025. The Company may draw the loan proceeds in a single draw through November 23, 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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