Asure Software, Inc. Enters into Third Amended and Restated Credit Agreement
January 03, 2020 at 04:31 pm EST
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On December 31, 2019, Asure Software, Inc. entered into a third amended and restated credit agreement (the “Third Restated Credit Agreement”) with Wells Fargo Bank, National Association, as agent and lender, amending and restating the terms of the Second Amended and Restated Credit Agreement dated as of March 29, 2018. The third restated credit agreement provides for $20,000,000 in term loans and a $10,000,000 revolver. The outstanding principal amount of the term loan is payable as follows: $125,000 beginning on March 31, 2020 and the last day of each fiscal quarter thereafter through and including December 31, 2021; and $250,000 beginning on March 31, 2022 and the last day of each fiscal quarter thereafter. The outstanding principal balance and all accrued and unpaid interest on the term loans is due on December 31, 2024. The Third Restated Credit Agreement also: adds a covenant that requires that achieve EBITDA of at least $3,750,000 at March 31, 2020, $4,850,000 at June 30, 2020 and $5,950,000 at September 30, 2020, which covenant is in lieu of a leverage covenant calculated at March 31, 2020, June 30, 2020 and September 30, 2020; amends the leverage ratio covenant to decrease the maximum ratio to 3.50:1.00 at December 31, 2020, 3.25:1.00 at March 31, 2021 and June 30, 2021 and 2.50:1.00 at September 30, 2021 and each quarter-end thereafter; and amends the fixed charge coverage ratio to be no less than 1.00:1.00 at March 31, 2020, and each quarter end thereafter through and including December 31, 2021, 1.50:1.00 at March 31, 2022, 1.60:1.00 at June 30, 2022, and 2.00:1:00 at September 30, 2022 and each quarter end thereafter.
Asure Software, Inc. is a provider of cloud-based Human Capital Management (HCM) software solutions delivered as Software-as-a-Service (SaaS) for small and medium-sized businesses. Its HCM suite, AsureHCM, includes cloud-based Payroll, Tax Services, and Time & Attendance software and Asure Marketplace as well as human resources (HR) services ranging from HR projects to completely outsourcing payroll and HR staff. AsureMarketplace automates interactions between its HCM systems with third-party providers and extend the range of services offered to employers and their employees. It offers these services directly and indirectly through its network of reseller partners. It provides three levels of HR services: HR support, which provides an on-demand HR resource library, phone and email support for any HR issues and compliance and policy updates; Strategic HR, which provides more in-depth support for strategic HR decision making, and Total HR that offers a complete HR outsourcing solution.