Discontinued Operations Discontinued Operations

3 Months Ended

Mar. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]



Note 10	Notes Payable - Napster

In 2015, Napster entered into a Loan and Security Agreement (Revolver LSA) with a bank. The Revolver LSA was amended and restated in 2017 and, in January 2019, Napster entered into the second amendment to the amended Revolver LSA. The available borrowing on the Revolver LSA is based upon Napster's accounts receivable and direct to consumer subscription deposits. The amended Revolver LSA has a maximum available balance of $7 million. The maturity date is no later than April 30, 2019 with earlier maturity possible based on conditions set forth in the Revolver LSA. The interest rate is 0.75% above the Prime Rate (defined as the greater of 4.25% or the Prime Rate published in the Wall Street Journal). Interest is due monthly. At March 31, 2019, Napster had $4.9 million borrowings outstanding with an interest rate of 6.25%. Subsequent to quarter end, the Revolver LSA matured and the loan balance was paid in full on April 30, 2019.

In 2017, Napster entered into a Non-Recourse Purchase of Eligible Receivables Agreement (NRP Agreement) with an international bank (Purchaser) in which Napster will sell and assign on a continuing basis its eligible receivables to the Purchaser in return for 90% of the receivables upfront, up to a maximum amount of $15.0 million in advances. The interest rate is 2.25% above the 1-month-EURIBOR with a minimum 0.0% rate applying to the 1-month-EURIBOR rate. At March 31, 2019, Napster had $8.4 million borrowings outstanding with an interest rate of 2.25%.

The Revolver LSA required Napster to maintain a balance of unrestricted cash at the bank of not less than $1.5 million plus 5% of the total amount outstanding under the NRP Agreement. At March 31, 2019, Napster had $1.9 million of restricted cash equivalents related to the Revolver LSA covenant. As the loan was paid off on April 30, 2019, this amount is no longer restricted.