Innodata Secures $50M Credit Facility

TL;DR

Innodata just locked down a $50M credit line, boosting their war chest.

AI Summary

On August 5, 2024, INNODATA INC. entered into a material definitive agreement, specifically a credit agreement with an initial aggregate principal amount of $50.0 million. This agreement creates a direct financial obligation for the registrant and is part of a broader financing arrangement.

Why It Matters

This new credit facility provides Innodata with significant financial flexibility, potentially enabling strategic investments or operational expansions.

Risk Assessment

Risk Level: low — The filing details a standard credit agreement, which is a common financing activity for companies and does not inherently signal distress or unusual risk.

Key Numbers

• $50.0M — Credit Facility Amount (Initial aggregate principal amount of the new credit agreement)

Key Players & Entities

• INNODATA INC. (company) — Registrant
• August 5, 2024 (date) — Date of Material Definitive Agreement
• $50.0 million (dollar_amount) — Initial aggregate principal amount of credit agreement

FAQ

Key Financial Figures

• $30.0 million — to the lesser of the borrowing base and $30.0 million (the "Maximum Credit"), and provides th
• $50.0 m — imum Credit of up to, but not to exceed $50.0 million, subject to the approval of the L
• $4.0 m — b) 20% of all eligible accounts and (c) $4.0 million, minus (iv) certain other reserve
• $12.4 million — e calculation would equal approximately $12.4 million. The Company is entering into the Amend

Filing Documents

• tm2421053d1_8k.htm (8-K) — 28KB
• tm2421053d1_ex10-1.htm (EX-10.1) — 419KB
• 0001104659-24-087285.txt ( ) — 702KB
• inod-20240805.xsd (EX-101.SCH) — 3KB
• inod-20240805_lab.xml (EX-101.LAB) — 33KB
• inod-20240805_pre.xml (EX-101.PRE) — 22KB
• tm2421053d1_8k_htm.xml (XML) — 3KB

01

Item 1.01 Entry into a Material Definitive Agreement On August 5, 2024 (the "Effective Date"), Innodata Inc. (the "Company") entered into a second amendment (the "Amended Credit Agreement") to that certain Credit Agreement, dated April 4, 2023, with Wells Fargo Bank, National Association, as lender (the "Lender"), Innodata Synodex, LLC ("Synodex"), Innodata Docgenix, LLC ("Docgenix"), Agility PR Solutions LLC ("Solutions") and Innodata Services, LLC ("Services" and together with the Company, Synodex, Docgenix, and Solutions, individually, a "Borrower" and collectively, the "Borrowers"). Synodex, DocGenix, Solutions and Services are all subsidiaries of the Company. The Amended Credit Agreement provides for an increased secured revolving line of credit (the "Revolving Credit Facility") up to an amount equal to the lesser of the borrowing base and $30.0 million (the "Maximum Credit"), and provides that a Borrower may request an increase to the Revolving Credit Facility's Maximum Credit of up to, but not to exceed $50.0 million, subject to the approval of the Lender. As of the Effective Date the Revolving Credit Facility's borrowing base is calculated in accordance with the terms of the Amended Credit Agreement and on the basis of (i) 85% of eligible accounts (other than eligible foreign accounts and unbilled accounts), plus (ii) the lesser of (a) 80% of eligible accounts that are unbilled accounts and (b) 30% of all eligible accounts, plus (iii) the lesser of (a) 85% of eligible foreign accounts, (b) 20% of all eligible accounts and (c) $4.0 million, minus (iv) certain other reserves and adjustments. As of June 30, 2024, such borrowing base calculation would equal approximately $12.4 million. The Company is entering into the Amended Credit Agreement to have increased access to capital to support anticipated growth with new and existing customers. Increases in accounts receivables from these anticipated opportunities would increase the borrowing base calculation un

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 above is hereby incorporated by reference into this Item 2.03.

01

Item 9.01 Exhibits (d) Exhibits Exhibit No. Description 10.1 Second Amendment to the Credit Agreement, dated as of August 5, 2024, to Credit Agreement dated as of April 4, 2023, by and among Innodata Inc., Innodata Synodex, LLC, Innodata Docgenix, LLC, Agility PR Solutions LLC, and Innodata Services, LLC as borrowers, and Wells Fargo Bank, National Association, as lender. 104 Cover Page Interactive Data File (embedded with the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: August 8, 2024 INNODATA INC. By: /s/ Marissa B. Espineli Name: Marissa B. Espineli Title: Interim Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR