Company: TRUE
Filing Date: 2025-11-13
Form Type: PREM14A
Source: 0001104659-25-111498
Chunk: 93

Company: TrueCar, Inc.
Filing Date: 2025-11-13
Form: PREM14A
Chunk 93
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On September 24, 2025, Perkins delivered an updated draft of the Equity Commitment Letter to Alston, which proposed placing $6 million into escrow at signing and that the Investor would contractually

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guarantee the remainder of the $15 million Parent Termination Fee. The transmission also included an updated offer letter from Fair to TrueCar proposing merger consideration of $2.58 per share and setting forth that financing would be provided solely by the Investor. The offer letter noted that the Investor had agreed to provide $135 million of equity financing and that the remainder of the cash required to close would come from existing cash on the Company’s balance sheet and/or additional investments to be secured between signing and closing. The offer letter noted that the Investor’s willingness to provide such financing was conditioned upon there being a specified cap on the amount of the Company’s transaction expenses.

On September 25, 2025, the Board met, with representatives from management, Morgan Stanley and Alston present, to discuss the status of management’s discussions with Fair and the Investor and the terms of the updated offer letter and draft Equity Commitment Letter. The Board members and management discussed with representatives of Alston and Morgan Stanley the risks posed by Fair’s proposal and the structures that could be employed to mitigate such risks. Following that discussion, the Board instructed management to engage in further discussions with Fair and the Investor and to emphasize in such discussions that it was important to the Company for any agreement reached to contain customary terms designed to increase the likelihood of closing.

Between September 25 and September 29, 2025, Mr. Reigersman continued to engage with Mr. Painter and the Investor regarding sources and uses of capital. Mr. Reigersman conveyed the Board’s discomfort related to the financing commitments and limited recourse and suggested an increased Parent Termination Fee to incentivize Fair to cause Parent to take all actions necessary to close the transaction. However, the Investor indicated that since the Investor would effectively be responsible for any Parent Termination Fee, $15 million was the highest amount it was willing to provide. Mr. Reigersman responded that the Board would be more inclined to support a Parent Termination Fee in this amount if the full amount was pre-funded to the Company at signing. The parties also discussed various other possibilities to provide comfort of closing, including the terms of the Parent Termination Fee and the specific performance remedy, including under what circumstances the Company would be entitled to pursue specific performance.