GT Media, Inc. provides consulting services in the publishing and education fields. The company also has investment interests in radio stations and information technology companies. The company was incorporated in 2005 and is based in Windsor, Canada. GT Media, Inc. operates as a subsidiary of Gaiam Inc.
1723 McKay Avenue
Windsor, ON N9B 3P3
Founded in 2005
Gaiam Inc. Enters Amended and Restated Credit Agreement
Aug 6 12
Gaiam, Inc. announced that it has paid in full the outstanding balance owed to its prior senior lender, Wells Fargo Bank, National Association, in the amount of $14,052,888.89 (inclusive of principal and interest) and terminated the underlying Amended and Restated Credit Agreement, dated July 29, 2005, between Gaiam and Wells Fargo (as the same has been amended and modified from time to time, the Terminated Credit Agreement). The Terminated Credit Agreement permitted borrowings of up to $15 million based upon the collateral value of Gaiam's accounts receivable and inventory. The Terminated Credit Agreement would have expired on November 16, 2012. Outstanding advances bore interest at the lower of the prime rate less 50 basis points or LIBO plus 275 basis points, with a minimum rate of 4.25%. Borrowings were secured by a pledge of Gaiam's assets. On July 31, 2012, each of Gaiam Americas, Inc., SPRI Products, Inc., GT Direct, Inc. and VE Newco, LLC entered into a Revolving Credit and Security Agreement with PNC Bank, N.A. (PNC), as agent and lender. Borrowings are secured by a pledge of the Borrower's assets. The Credit Agreement provides for a revolving line of credit of up to $35 million, subject to borrowing base and related limitations. Subject to certain limitations, the principal amount of the revolving loan is due and payable on the earlier of July 30, 2015 or upon the termination of the Credit Agreement. For advances that are not Eurodollar rate loans, referred to as domestic rate loans in the Credit Agreement, annual interest will accrue at a rate equal to 0.75% plus the higher of PNC's stated commercial lending rate in effect on such day, the Federal Funds Open Rate (as defined in the Credit Agreement; essentially the daily federal funds open rate as quoted by ICAP North America, Inc. in effect on such day plus 0.5%, and the sum of the Daily LIBOR Rate in effect on such day plus 1.0%. The Borrowers may also obtain Eurodollar rate loans under the revolving line of credit. Eurodollar rate loans will accrue annual interest at a rate equal to the sum of 2.25% plus the Eurodollar Rate. Interest will be payable monthly in arrears for domestic rate loans and at the end of each interest period for Eurodollar rate loans. Upon and after the occurrence of an event of default, and during the continuation thereof, at the option of PNC or at the direction of a certain specified number of lenders, outstanding advances will bear interest at the interest rate set above for domestic rate loans plus 2% per year. The Borrowers paid a fee of $175,000 to PNC in consideration for entering into the Credit Agreement and will pay PNC a fee equal to 0.5% per year on the undrawn amount of the revolving line of credit. The Borrowers must also prepay the advances in amounts equal to the net proceeds of certain sales of collateral and the net proceeds of certain issuances of equity interest or indebtedness. The Borrowers must pay an early termination fee equal to 2% of the maximum amount of the revolving line of credit if the Borrowers prepay all advances before July 31, 2013, and an early termination fee equal to 1% of the maximum amount of the revolving line of credit if the Borrowers prepay all advances before July 31, 2014.