Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 20

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 20
---
 1.75:1.00 
    $500,000 

     19 

The Credit Agreement also
contains customary affirmative covenants for a transaction of this nature, including among other things, covenants relating to: maintenance
of adequate financial and accounting books and records, delivery of financial statements and other information, preservation of existence
of the Company and subsidiaries, payment of taxes and claims, compliance with laws, maintenance of insurance, foreign qualification, use
of proceeds, cash management system, maintenance of properties, and conduct of business.

The Credit Agreement also
contains customary negative covenants for a transaction of this nature, including, among other things, covenants relating to debt, liens,
investments, negative pledges, dividends and other debt payments, restriction on fundamental changes, sale of assets, transactions with
affiliates, restrictive agreements, and changes in fiscal year.

The Credit Agreement also
contains various Events of Default (subject to certain grace periods, to the extent applicable), including among other things, Events
of Default for the nonpayment of principal, interest or fees; breach of certain covenants; inaccuracy of the representations or warranties
in any material respect; bankruptcy or insolvency; dissolution or change of control; certain unsatisfied judgments; defaults under material
agreements; certain unfunded liabilities under employee benefit plans; certain unsatisfied judgments; certain ERISA violations; and the
invalidity or unenforceability of the Credit Agreement. If an Event of Default occurs, the Company may be required to repay all amounts
outstanding under the Credit Agreement. The Term Loan and any advances under the Revolving LOC are secured by a first priority lien and
security interest to the benefit of Pinnacle in the Event of Default on all of the Company’s current or future assets and each of
the Guarantor’s current or future assets.

Note 9: Interest Rate Swap

The Company entered into an
interest rate swap agreement to convert its interest rate exposure from variable rate to fixed rate to control cash outflows related to
interest on its variable rate debt. The Company originally had $20,000,000 of notional amount interest rate swap agreement, which amortized
in-line with its long-term Credit Agreement. Under the swap agreement, the Company pays a fixed rate of interest at 6.217% and receives
an average variable rate of SOFR + 2.35% adjusted monthly. As of September 30, 2025, the variable rate