Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 125

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 125
---
 amendment fee and will amortize such fee as an adjustment to interest expense over the remaining term of the Revolver, along with any existing unamortized costs, using the effective interest method. The amendment fee was $750,000 (paid by IDC), split evenly between IDC and Lyneer. Fees paid to third parties are expensed as incurred, and no gain or loss was recorded on the modification. The Third Amendment increased the applicable margin thresholds for various products as follows:

| Average Availability                                                 |     |         SOFR 
    Revolving 
 Credit Loans |   |     |    Base Rate 
    Revolving 
 Credit Loans |   |     |       SOFR 
 FILO Loans |   |     |  Base Rate 
 FILO Loans |   |
| Greater than $83,333,333.33                                          |     |         2.25 | % |     |         1.25 | % |     |       3.25 | % |     |       2.25 | % |
| Greater than $41,666,666.66 but less than or equal to $83,333,333.33 |     |         2.50 | % |     |         1.50 | % |     |       3.50 | % |     |       2.50 | % |
| Less than $41,666,666.66                                             |     |         2.75 | % |     |         1.75 | % |     |       3.75 | % |     |       2.75 | % |

On July 14, 2023, Lyneer received notice from the administrative agent of the lender that Lyneer was in default under the Revolver due to its failure to repay the over -advanceon the Revolver. Further, on July 21, 2023, Lyneer received notice from the lender advising Lyneer that it may not make payments on its Term Loan until the over -advancepayment default has been cured or waived. On August 31, 2023, Lyneer and IDC entered into the Fourth Amendment and Forbearance Agreement with the lender under the Revolver under which the lender waived all existing events of default as of the date of the agreement and agreed to forbear from exercising its rights and remedies with respect to such events of default under the Revolver through November 17, 2023. The Fourth Amendment and Forbearance Agreement was treated as a