Company: ATLN
Filing Date: 2025-05-05
Form Type: 8-K
Source: 0001605888-25-000010
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Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-05
Form: 8-K
Item: Item 2.03
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Item 2.03.

Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

Amended and Restated Convertible Promissory Note

In connection with the loan transaction described hereinafter with North Mill Capital, LLC, the Company and IDC Technologies. Inc (“ IDC”) amended a convertible promissory note, originally issued on June 18, 2024 from the Company to IDC, in the principal amount of thirty-five million dollars ($35,000,000). By mutual agreement, the parties extended the Maturity Date (as defined) to March 31, 2027.

New ABL Lender

On April 29, 2025, Atlantic International Corp. (the “ Company”)’s subsidiary, Lyneer Staffing Solutions, LLC (“ Lyneer”) entered into a Loan and Security Agreement (the “ Loan Agreement”) providing for a $70 million senior secured revolving credit facility (the “ New Revolving Credit Facility”) with North Mill Capital, LLC, d/b/a SLR Business Credit, as lender (“ SLR” or the “ Lender”).

The Loan Agreement replaced Lyneer’s prior senior secured revolving credit facility (the “ ABL”) provided by BMO Bank, N. A. (“ BMO”). The Loan Agreement provides for an initial maximum principal amount of $70 million available under the New Revolving Credit Facility. Upon the request of Borrower made at any time from and after the date hereof until the Termination Date (defined below), and so long as no Event of Default has occurred, Lender may, in its good faith reasonable discretion, make Advances to Borrower under a revolving credit facility in an amount up to ninety percent (90%) of the aggregate outstanding amount of Eligible Accounts, provided, however, in no event at any time shall the maximum aggregate principal amount outstanding under the Revolving Credit Facility exceed Seventy Million Dollars ($70,000,000.00).

Interest shall accrue on the Daily Balance at the per annum rate of one percent (1.00%) above the Prime Rate in effect from time to time, but not less than five and three quarters of one percent (5.75%) (the “ Applicable Rate”). The Company's ability to obtain revolving credit advances under the Loan Agreement is contingent upon certain conditions, including the absence of a default under the Loan Agreement. Revolving credit loan proceeds may be used for general business purposes, including the acquisition of real estate and