Item 1.01 Entry into a Material Definitive Agreement.
On January 22, 2021, Harvest Capital Credit Corporation (the "Company") entered
into the Twelfth Amendment to the Loan and Security Agreement (the "Amendment"),
by and among the Company, HCAP Equity Holdings, LLC, a Delaware limited
liability company and wholly owned subsidiary of the Company, and HCAP ICC, LLC,
a Delaware limited liability company and wholly owned subsidiary of the Company,
as borrowers, Pacific Western Bank, as agent and a lender, and each of the other
lenders from time to time party thereto, including City National Bank.
The Amendment amends the Loan and Security Agreement, dated as of October 29,
2013 (as amended, restated and modified from time to time, the "Loan
Agreement"), to, among other things, (i) extend the revolving period to June 30,
2021, until which date the Company may receive additional advances at the
discretion of the lenders; (ii) amend the definition of "debt service" to
exclude from the calculation of the debt service coverage ratio, for any period
from August 1, 2020 through June 30, 2021 (extended from December 31, 2020
pursuant to the Amendment), an amount equal to the lesser of (x) the amount of
the required monthly amortization payments for the relevant period and (y) the
aggregate amount of all prepayments of principal (both voluntary and mandatory)
collected by the Company during the relevant period; and (iii) revise the
definition of "modified net investment income" to account for the Company's
anticipated transaction costs associated with its pending merger with Portman
Ridge Finance Corporation. The other material terms of the Loan Agreement were
unchanged.
The description above is only a summary of the material provisions of the
Amendment and is qualified in its entirety by reference to the Company of the
Amendment which is filed as Exhibit 10.1 to this Current Report on Form 8-K and
is incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of this Current Report on Form 8-K is
incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
Exhibit No. Description
10.1 Twelfth Amendment to Loan and Security Agreement, dated as of January
22, 2021, by and among the Company, HCAP Equity Holdings, LLC and HCAP
ICC, LLC, as borrowers, Pacific Western Bank, as agent and a lender,
and each of the other lenders from time to time party thereto
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