Zagg ups maximum revolving amount by $50 million, borrowing base

By Angela McDaniels

Tacoma, Wash., July 17 – Zagg Inc. amended its credit agreement on Monday to increase the maximum revolving amount to $135 million from $85 million and make other changes, according to an 8-K filing with the Securities and Exchange Commission.

The $135 million maximum revolving amount will decrease to $110 million on Jan. 1 and to $100 million on June 1, 2018.

The letter-of-credit commitment was increased to $40 million from $7.5 million.

The borrowing base was increased by $15 million on a seasonal basis between Aug. 1 and Sept. 30.

Permitted foreign subsidiary loans, guaranties and investments were expanded to include a $2 million loan dated April 5, 2017 from the company to ZAGG International Distribution Ltd. and any other loan or investment by the company or any domestic subsidiary in or to, or guaranty of debt of, any foreign subsidiary of the company until March 31, 2018, in an aggregate amount not to exceed $8 million.

In connection with the amendment, the company also entered into replacement revolving credit notes with each of the lenders and agreed to pay the administrative agent and lenders total amendment and arrangement fees of $145,000.

KeyBank NA, ZB NA and JPMorgan Chase Bank NA are the lenders with KeyBank as the administrative agent.

Based in Salt Lake City, Zagg makes accessories for smartphones and tablets.

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