Company: ATLN
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001605888-25-000006
Chunk: 133

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 133
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,333,333.331.75 %0.75 %2.75 %1.75 %Greater than $41,666,666.66 but less than or equal to $83,333,333.332.00 %1.00 %3.00 %2.00 %Less than $41,666,666.662.25 %1.25 %3.25 %2.25 %Swing Line Loans on the Revolver bear interest at a rate equal to the Base Rate plus the Applicable Margin.On May 5, 2023, the Company entered into the Third Amendment to the Revolver. The Third Amendment to the Revolver was treated as a modification after the Company’s analysis according to ASC 470 – Debt and as such, the Company is deferring the amendment fee and will amortize as an adjustment to interest expense over the remaining term, along with any existing unamortized costs using the effective interest method. The amendment fee was $750,000, split evenly between IDC and the Company. Fees paid to third parties are expensed as incurred, and no gain or loss was recorded on the modification.The Third Amendment to the Revolver increased the applicable margin thresholds for various products as follows:Average AvailabilitySOFRRevolvingCredit Loans Base RateRevolvingCredit Loans SOFRFILOLoans Base RateFILOLoans Greater than $83,333,333.332.25 %1.25 %3.25 %2.25 %Greater than $41,666,666.66 but less than or equal to $83,333,333.332.50 %1.50 %3.50 %2.50 %Less than $41,666,666.662.75 %1.75 %3.75 %2.75 %On August 31, 2023, the Company entered into the Fourth Amendment and Forbearance Agreement to the Revolver (the “Fourth Amendment to the Revolver”) which decreased the available borrowing capacity to $100,000,000. The applicable margins were raised to: (i) 4.75% per annum with respect to SOFR Revolving Credit Loans, (ii) 3.75% per annum with respect to Base Rate Revolving Credit Loans, (iii) 5.75% per annum with respect to SOFR FILO Loans, and (iv)