SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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|Item 1.01.||Entry into a Material Definitive Agreement.|
The disclosure set forth under Item 2.03 of this Current Report on Form 8-K is incorporated by reference into this Item 1.01.
|Item 2.03.||Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.|
On April 21, 2023, Arcturus Therapeutics, Inc. (“Borrower”), a wholly-owned subsidiary of Arcturus Therapeutics Holdings Inc. (the “Company”, and together with Borrower, “Arcturus”), entered into a credit agreement (the “Credit Agreement”) Wells Fargo Bank, National Association (“Wells Fargo”) whereby Wells Fargo will make a $50 million revolving credit line available to Arcturus (the “Loan”) and each Loan evidenced by a revolving line of credit note (the “Note”).
Borrowings under the Credit Agreement will bear interest at a rate of 1.00% above either the Daily Simple SOFR or Term SOFR (as such terms are defined in the Note), with “SOFR” being the rate per annum equal to the secured overnight financing rate as administered by the Federal Reserve Bank of New York. All Loans shall bear interest during an Event of Default (as defined in the Credit Agreement) at a rate equal to 2.00% above the interest rate applicable immediately prior to the occurrence of the Event of Default (as defined in the Credit Agreement).
The term of the Credit Agreement is two years, with an option for one-year renewals subject to Wells Fargo approval and Arcturus furnishing to Wells Fargo a non-refundable commitment fee equal to 0.25% of the Loan amount for each such renewal. There is no penalty for terminating the Credit Agreement. There is no penalty for terminating the facility prior to the maturity date of the Note. As collateral, Borrower has agreed to pledge $55 million in cash to be held at Arcturus’ securities accounts with Wells Fargo Securities, LLC, an affiliate of Wells Fargo, pursuant to a security agreement.
The foregoing descriptions of the Credit Agreement, Note, and security agreement are not complete descriptions of all terms and are qualified in their entirety by reference to the full text of the Credit Agreement, Note and security agreement, respectively, that will be filed as exhibits to a subsequent filing on a periodic report.
Item 9.01. Financial Statements and Exhibits.
|Exhibit No.||Description of Exhibit|
|104||Cover Page to this Current Report on Form 8-K in Inline XBRL|
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.
|Arcturus Therapeutics Holdings Inc.|
|Date: April 21, 2023|
|Name:||Joseph E. Payne|
|Title:||Chief Executive Officer|