Sezzle Inc.
10/18/2024 | Press release | Distributed by Public on 10/18/2024 14:04
Financial Obligation Form 8 K
Item 1.01. Entry into a Material Definitive Agreement
On October 15, 2024, Sezzle Inc. (Sezzle or the Company) and Bastion Funding VI LP, in its capacity as administrative agent on behalf of the Secured Parties under the Company's Revolving Credit and Security Agreement, executed Amendment No. 2 to the Limited Guaranty and Indemnity Agreement. The amendment updates covenants regarding Sezzle's minimum tangible net worth and the ability of Sezzle to make "restricted payments," which include dividends to stockholders and repurchases of its shares of common stock. The amendment increases the cap on such restricted payments, permitting restricted payments so long as Sezzle's trailing twelve months of consolidated net income is positive and the aggregate amount of restricted payments does not exceed the sum of 50% of Sezzle's consolidated net income between October 14, 2021 and October 15, 2022, and 50% of Sezzle's monthly consolidated net income after such time (or 100% of the monthly net losses after such time).
The foregoing description of the amendment is a summary only, and is qualified in its entirety by reference to the amendment, a copy of which will be filed as an exhibit to Sezzle's Annual Report on Form 10-K for the year ended December 31, 2024.