Beyond, Inc. Enters New Loan Agreement
Ticker: BBBY-WT · Form: 8-K · Filed: Oct 21, 2024 · CIK: 1130713
Sentiment: neutral
Topics: debt, financing, material-agreement
Related Tickers: OSTK
TL;DR
Beyond, Inc. just signed a new loan agreement, adding to their debt.
AI Summary
On October 21, 2024, Beyond, Inc. entered into a material definitive agreement, specifically a loan agreement. This agreement creates a direct financial obligation for the registrant, indicating a new debt arrangement for the company.
Why It Matters
This filing indicates Beyond, Inc. is taking on new debt, which could impact its financial leverage and future investment capacity.
Risk Assessment
Risk Level: medium — Taking on new debt can increase financial risk, especially if the company's ability to repay is uncertain.
Key Players & Entities
- Beyond, Inc. (company) — Registrant
- October 21, 2024 (date) — Date of Report
FAQ
What is the specific nature of the material definitive agreement entered into by Beyond, Inc.?
The filing indicates the agreement is a loan agreement, creating a direct financial obligation for the registrant.
What is the date of this filing and the earliest event reported?
The date of the report and the earliest event reported is October 21, 2024.
What is the principal executive office address for Beyond, Inc.?
The principal executive offices are located at 799 W. Coliseum Way, Midvale, Utah 84047.
What is the Commission File Number for Beyond, Inc.?
The Commission File Number for Beyond, Inc. is 001-41850.
What was the former name of Beyond, Inc.?
Beyond, Inc. was formerly known as Overstock.com, Inc.
Filing Stats: 1,462 words · 6 min read · ~5 pages · Grade level 13.8 · Accepted 2024-10-21 07:10:13
Key Financial Figures
- $0.0001 — ange on which registered Common Stock, $0.0001 par value per share BYON New York Stock
- $17 million — Agreement "), the Company will provide $17 million in debt financing to Kirkland's and its
- $8.5 million — nd's and its subsidiaries, including an $8.5 million promissory note and a $8.5 million conv
- $1.85 — s common stock at a conversion price of $1.85 per share in an amount not to exceed 2,
- $8 million — venants. The Company will also invest $8 million in Kirkland's common stock pursuant to
- $200,000 — sales, with a minimum fee equal to (i) $200,000 for the first 24 months and (ii) $25,00
- $25,000 — 00,000 for the first 24 months and (ii) $25,000 per month thereafter. Revolving Line
- $25 million — ch BMO agrees to lend the Company up to $25 million on a one-year revolving line of credit
Filing Documents
- ostk-20241021.htm (8-K) — 37KB
- 0001130713-24-000067.txt ( ) — 160KB
- ostk-20241021.xsd (EX-101.SCH) — 2KB
- ostk-20241021_lab.xml (EX-101.LAB) — 21KB
- ostk-20241021_pre.xml (EX-101.PRE) — 12KB
- ostk-20241021_htm.xml (XML) — 3KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. Kirkland's Credit Agreement On October 21, 2024, the Company entered into a strategic business relationship with Kirkland's Inc. (" Kirkland's "). Pursuant to a secured Term Loan Credit Agreement (" Credit Agreement "), the Company will provide $17 million in debt financing to Kirkland's and its subsidiaries, including an $8.5 million promissory note and a $8.5 million convertible note (the " Loan "). The Loan will be secured by Kirkland's' assets and second in priority behind Bank of America's existing loan to Kirkland's (the " ABL Facility ") and will mirror the terms of the ABL Facility. Kirkland's will use the Loan to pay off an existing loan to Gordan Brothers, to pay transaction fees in connection with the Credit Agreement and related transactions, to increase cash on hand, to finance capital expenditures, and for general corporate purposes. A portion of the $8.5 million convertible note (plus accrued interest) (the " Conversion Amount ") can be converted into Kirkland's common stock at a conversion price of $1.85 per share in an amount not to exceed 2,609,215 shares at the Company's election prior to obtaining Kirkland's stockholder approval of the Subscription Agreement (as defined below) and the full amount of the convertible note will automatically convert upon obtaining Kirkland's stockholder approval. The Credit Agreement is subject to customary affirmative covenants and negative covenants as well as financial covenants. The Company will also invest $8 million in Kirkland's common stock pursuant to a Subscription Agreement and Investor Rights Agreement (collectively the " Subscription Agreement "), subject to receiving approval of Kirkland's stockholders. If Kirkland's issues the full amount of shares contemplated by the Subscription Agreement and the Company converts the full amount of the Conversion Amount, the Company will own up to approximately 40% of Kirkland's common stock. In excha