SEC Filings
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| 10-Q | |||||||||||||||||
| HRG GROUP, INC. filed this Form 10-Q on 05/09/2016 | |||||||||||||||||
| Entire Document | |||||||||||||||||
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Agreement), to a spread of 1.25%-2.25% and (ii) the Eurodollar spread was increased from a range of 1.75%-2.75% to a range of 2.25%-3.25%. Additionally, the commitment fee was raised to 0.50% at all Borrowing Base Usage levels, up from 0.375% when the Borrowing Base Usage was less than 50%. The amendment further provided for a redetermination of Compass’ borrowing base on or about May 16, 2016 with scheduled redeterminations to begin December 1, 2016 and proceed every June 1 and December 1 thereafter. It is possible that Compass’ borrowing base capacity will be further reduced at its next periodic redetermination and renewal, which is scheduled for May 2016. In the event that Compass’ borrowing base is reduced, it will be an event of default under the Compass Credit Agreement, as amended, which can accelerate payment of the entirety of the loan, if Compass is unable to reduce its debt to the level of the new borrowing base amount. Compass has limited working capital and it will need to raise additional capital to fund any reduction of its credit facility. Compass cannot be certain that additional capital or other types of financing will be available if needed or that, if available, the terms of such financing will be favorable or acceptable. Compass’ ability to arrange additional financing in the future will depend, in part, on the prevailing capital market conditions as well as its business performance. Compass’ ability to continue on a going concern basis beyond the next twelve months depends on its ability to successfully raise additional capital. If Compass is unable to raise additional capital, or otherwise fails to comply with the terms of the Compass Credit Agreement, its business could be jeopardized and Compass may not be able to continue. For additional information, see the risk factors contained in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2015 that are entitled “Compass has a substantial amount of indebtedness, which may adversely affect its cash flow and ability to operate its business, remain in compliance with debt covenants and make payments on its debt and distributions to us. HGI Funding has provided credit support for such indebtedness in the past but may choose not to do so in the future” and “We are a holding company and our only material assets are our equity interests in our operating subsidiaries and our other investments; as a result, our principal source of revenue and cash flow is distributions from our subsidiaries; our subsidiaries may be limited by law and by contract in making distributions to us.”
During the fiscal quarter ended March 31, 2016, HRG did not sell any equity securities that were not registered under the Securities Act of 1933, as amended. On May 29, 2014, the HRG’s board of directors authorized a program to purchase up to $100.0 million of HRG’s shares of common stock. During the fiscal quarter ended March 31, 2016 we did not repurchase any of our common stock. At March 31, 2016, there were $12.3 million of shares that may yet be repurchased under the plans of the program authorized by HRG’s board of directors.
None.
Not applicable.
None. 70 | |||||||||||||||||
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