Sezzle Inc. Amends Credit Agreement
Ticker: SEZL · Form: 8-K · Filed: Oct 2, 2024 · CIK: 1662991
| Field | Detail |
|---|---|
| Company | Sezzle Inc. (SEZL) |
| Form Type | 8-K |
| Filed Date | Oct 2, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 3 min |
| Key Dollar Amounts | $0.00001 |
| Sentiment | neutral |
Sentiment: neutral
Topics: credit-agreement, debt, financing
Related Tickers: SZL
TL;DR
Sezzle just amended its credit agreement with Wilmington Savings Fund Society, FSB. Details to follow.
AI Summary
On September 26, 2024, Sezzle Inc. entered into a material definitive agreement, specifically a Second Amendment to the Credit Agreement, with Wilmington Savings Fund Society, FSB, as Administrative Agent. This amendment modifies the existing credit facility, impacting the company's financial obligations.
Why It Matters
This amendment to Sezzle's credit agreement could affect its borrowing capacity, interest rates, and overall financial flexibility, potentially impacting its ability to fund operations and growth.
Risk Assessment
Risk Level: medium — Amendments to credit agreements can signal changes in a company's financial health or its relationship with lenders, requiring closer examination.
Key Players & Entities
- Sezzle Inc. (company) — Registrant
- Wilmington Savings Fund Society, FSB (company) — Administrative Agent and lender
- September 26, 2024 (date) — Date of earliest event reported
FAQ
What specific changes were made in the Second Amendment to the Credit Agreement?
The filing indicates a 'Second Amendment to the Credit Agreement' was entered into, but the specific details of the amendments are not provided in this summary section of the 8-K.
Who is Wilmington Savings Fund Society, FSB in relation to Sezzle Inc.?
Wilmington Savings Fund Society, FSB is acting as the Administrative Agent for the credit facility.
What is the significance of entering into a 'Material Definitive Agreement'?
A material definitive agreement signifies a significant contract or transaction that is expected to have a substantial impact on the company's business or financial condition.
What other items are Sezzle Inc. reporting on this 8-K?
In addition to the material definitive agreement, Sezzle Inc. is also reporting the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement.
When was this event reported to the SEC?
The Form 8-K was filed as of October 2, 2024, reporting an earliest event date of September 26, 2024.
Filing Stats: 703 words · 3 min read · ~2 pages · Grade level 12.7 · Accepted 2024-10-02 16:02:49
Key Financial Figures
- $0.00001 — ich Registered Common Stock, par value $0.00001 per share SEZL The Nasdaq Stock Market
Filing Documents
- szl-20240926.htm (8-K) — 26KB
- 0001662991-24-000273.txt ( ) — 157KB
- szl-20240926.xsd (EX-101.SCH) — 2KB
- szl-20240926_lab.xml (EX-101.LAB) — 24KB
- szl-20240926_pre.xml (EX-101.PRE) — 14KB
- szl-20240926_htm.xml (XML) — 3KB
01. Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement WebBank Banking Program As previously reported, on August 26, 2024, Sezzle Inc. (Sezzle or the Company) and WebBank, a Utah-chartered industrial bank, entered into a five-year strategic partnership program by executing a Loan and Receivables Sale Agreement and Marketing and Servicing Agreement. The program launched on September 27, 2024. On September 26, 2024, the parties amended and restated their existing agreements (the Amended Bank Program Agreements) to provide that Sezzle, rather than WebBank, will remain as the issuer of Sezzle's subscription products, Sezzle Anywhere and Sezzle Premium. WebBank will continue to serve as Sezzle's exclusive bank to originate and finance Sezzle's products currently offered through the Sezzle platform, including Sezzle's "Pay-in-2" and "Pay-in-4" products, subject to limited exceptions. WebBank also remains the exclusive issuer of all Sezzle card products, including the Sezzle Virtual Card (subject to up to a one-year transition period) and gift cards. Credit Agreement Amendments On September 26, 2024 , Sezzle Funding SPE II, LLC (the Borrower), a wholly owned indirect subsidiary of Sezzle, Bastion Funding VI LP, as administrative agent (the Agent), and certain lenders party thereto amended the terms of the Revolving Credit and Security Agreement (the Credit Agreement) dated April 19, 2024 pursuant to Amendment Nos. 1 and 2 to Revolving Credit and Security Agreement (the Amendments). The terms of the Amendments are intended to facilitate and permit the Borrower's purchase of loans required to be purchased from WebBank in accordance with the terms of the WebBank program. The foregoing descriptions of the terms of the Amended Bank Program Agreements and Amendments are summaries only, and are qualified in their entirety by reference to the Amended Bank Program Agreements and Amendments, copies of which will be filed as exhibits to Sezzle's quarterly report on Form 10