|Print Page | Close Window|
|HANGER, INC. filed this Form 8-K on 08/09/2017|
Agreement) among the Company, the lenders from time to time party thereto and the Term B Agent, upon the satisfaction of certain conditions. The amendments to the Term B Credit Agreement set forth in the Term B Amendment became effective on June 23, 2017. The Term B Amendment extends the deadline by which the Company must deliver to the Term B Agent its audited financial statements, the related audit report and a consolidated budget, in each case, for the fiscal year ending December 31, 2016, to February 15, 2018. The Amendment also extends the deadline by which the Compliance Date (as defined in the Term B Credit Agreement) must occur to February 15, 2018.
If the Company fails to comply with the terms of its Credit Agreement as amended by the Sixth Amendment and Waiver or the terms of its amended Term B Credit Agreement, or is unsuccessful at further amending or waiving the Credit Agreement when the existing amendments and waivers expire (if such further amendment and waivers become necessary), then the Company may be subject to numerous penalties, including but not limited to the acceleration of all of its debt outstanding pursuant to the Credit Agreement and the amended Term B Credit Agreement. In the event that the debt were to be accelerated, then the Company may need to seek alternative financing to satisfy its obligations. This alternative financing may not be available to the Company on terms that are favorable to it, or at all.
The Company currently believes that cash generated from operations, together with other available sources of liquidity, including borrowings available under its Credit Agreement and the Term B Credit Agreement, and any successor facilities, will be sufficient for at least the next twelve months to fund anticipated capital expenditures, make required routine payments of principal and interest on debt as such payments become due, and pay the additional third party expenses that the Company continues to incur as a result of the ongoing work relating to the filing of its financial statements. Outstanding borrowings under the Companys Credit Agreement mature on June 17, 2018. The Company currently believes that it will be able to refinance or otherwise satisfy that indebtedness prior to its maturity. A table setting forth the Companys outstanding indebtedness as of June 30, 2017, is included below.
At June 30, 2017, the Company had $0.6 million in cash and cash equivalents and $66.5 million in undrawn capacity available to it through the $118.3 million Aggregate Revolving Commitment under its Credit Agreement. As of that date, the Company had $25.0 million in borrowings and $6.1 million in letters of credit outstanding under its Aggregate Revolving Commitment. The Companys availability under the Aggregate Revolving Commitment was further limited by $20.7 million pursuant to the applicable usage limitation as specified in the Credit Agreement.
For covenant purposes, the Company defines liquidity under the Credit Agreement as being comprised of cash and cash equivalents available to it in its bank accounts, which differs from the Companys financial statement presentation of liquidity in that liquidity under the Credit Agreement does not reflect reduction for un-cleared checks and related items, which amounted to $6.0 million as of June 30, 2017. As of June 30, 2017, the Company had $6.6 million in cash and cash equivalents available to it in its bank accounts, which when coupled with the $66.5 million in available undrawn capacity under the Aggregate Revolving Commitment under the Credit Agreement, provided the Company with liquidity of $73.1 million for the purposes of the Credit Agreement.