INUVO, INC. |
(Exact name of registrant as specified in its charter) |
Nevada | 001-32442 | 87-0450450 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1111 Main St., Suite 201, Conway AR | 72032 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code | 855-440-8484 |
(Former name or former address, if changed since last report) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(Former name or former address, if changed since last report) |
(i) | provided for a thirty-six (36) month $2,000,000 term loan which bears interest at the prime rate plus 1% that refinances the Company’s existing term loan with Bridge Bank, which had $1,408,889 outstanding at September 28, 2014 and bore interest at the prime rate plus 6%; |
(ii) | renewed the existing revolving $10 million credit line, where availability is based on 80% of eligible receivables plus an additional non-formula amount of $1 million with eligible receivables bearing interest at the prime rate plus 0.5% and the $1 million non-formula at the prime rate plus 1%. |
(iii) | revised the targets for the Company’s financial covenants to (A) an Asset Coverage Ratio, measured monthly of (i) not less than 1.15 to 1.00 for the August 2014 to December 2014 measuring periods, and (ii) not less than 1.25 to 1.00 for each monthly measuring period thereafter; and (B) a Debt Service Coverage Ratio, measured monthly on a trailing 3 month basis, of (i) not less than 1.50 to 1.00 for the August 2014 measuring period, and (ii) not less than 1.75 to 1.00 for each monthly measuring period thereafter; |
(iv) | revised the Maturity Date of the revolver from March 29, 2015 to September 20, 2016 or such earlier date as provided in the agreement; and |
(v) | retroactively waived an existing default under the agreement related to compliance with certain financial covenants. |
Exhibit No. | Description | |
99.1 | Press release dated September 30, 2014, titled “Inuvo Improves Availability of Capital Through Enhanced Bank Agreement.” |
SIGNATURES |
INUVO, INC. | |||
Date: September 30, 2014 | By: | /s/ John B. Pisaris | |
John B. Pisaris, General Counsel |
99.1 | Press release dated September 30, 2014, titled “Inuvo Improves Availability of Capital Through Enhanced Bank Agreement.” |