Company: RILYN
Filing Date: 2025-01-10
Form Type: 8-K
Source: 0001213900-25-002319
Chunk: 1

Company: B. Riley Financial, Inc.
Filing Date: 2025-01-10
Form: 8-K
Item: Item 1.01
Chunk 1
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 India; and (c) 65% of the equity
interests in magicJack VocalTec Ltd., an Israel corporation. Such security interests are evidenced by pledge, security, and other related
agreements.

Pursuant to the Telecom Credit Agreement, the lenders made a new five-year
$80,000,000 term loan to the Borrowers, the proceeds of which were used to repay in full the obligations under the Original Credit
Agreements and for working capital and general corporate purposes. The Borrowers also made certain distributions to the parent company
of the Borrowers from the proceeds. The Telecom Credit Agreement also builds in provisions for incremental term loans up to $40,000,000
and the Borrowers were permitted to make certain distributions to the parent company of the Borrowers from the proceeds of such incremental
term loans.

The borrowings under the Telecom Credit Agreement bear interest equal
to the Term SOFR rate plus a margin of 2.75% to 3.50% per annum, depending on the Borrowers’ consolidated total funded
debt ratio as defined in the Telecom Credit Agreement. The interest rate is subject to a margin level of 3.25%. As of the Closing Date,
the outstanding principal amount was $80,000,000. Principal outstanding under the Telecom Credit Agreement is due in quarterly installments
in the amount of $4,000,000 and the remaining principal balance is due at final maturity on January 6, 2030.

The Borrowers paid a commitment fee and an arrangement
fee, each based on a percentage of the aggregate commitments and upon the closing of the Telecom Credit Agreement.

The Telecom Credit Agreement contains certain
covenants, including those limiting the Credit Parties’, and their subsidiaries’, ability to incur indebtedness, incur liens,
sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain
investments or pay dividends. In addition, the Telecom Credit Agreement requires the Credit Parties to maintain certain financial ratios.
The Telecom Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including
payment defaults, breach of representations and warranties, covenant defaults and cross defaults. If an event of default occurs, the agent
would be entitled to take various actions, including the acceleration of outstanding amounts due under the Telecom Credit Agreement.

The foregoing
description of the Telecom Credit Agreement does not purport to be complete and isqualified in its entirety by
reference to the complete