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| SRT > SEC Filings for SRT > Form 8-K on 2-Jul-2009 | All Recent SEC Filings |
2-Jul-2009
Entry into a Material Definitive Agreement, Other Events, Financial Statements and Ex
On June 26, 2009, StarTek, Inc. (the "Company") entered into a business loan agreement, promissory note and three commercial security agreements (together the "Agreement") with UMB Bank Colorado, N.A. ("UMB Bank") for a $15 million secured revolving line of credit. The Agreement is effective July 1, 2009 through August 1, 2010. This Agreement replaces the Company's $10 million secured revolving line of credit with Wells Fargo Bank N.A., which expired by its terms on June 30, 2009.
Borrowings under the Agreement bear interest at the option of the Company at the time of the borrowing of either: 1) the thirty-day LIBOR index plus 1.75%, 2) the sixty-day LIBOR index plus 1.75%, or 3) the ninety-day LIBOR index plus 1.75%. The interest rate shall never be less than 3.25% per annum. Under the Agreement, the Company granted UMB Bank a security interest in all of its present and future accounts receivable, general intangibles, and owned real property. In addition, under the Agreement, the Company is subject to certain financial covenants, which include maintaining 1) a ratio of total liabilities to tangible net worth of less than 1.0 to 1.0, 2) a tangible net worth of at least $105 million, 3) unencumbered liquid assets, defined as cash, certificate of deposits and marketable securities, of at least $10 million measured on the last day of each fiscal quarter and 4) a cash flow coverage ratio, as defined in the Agreement, of greater than 1.50 to 1.0 measured on the last day of each fiscal quarter for the previous twelve months.
In addition, the Company paid off the remaining principal balance on the Secured Equipment Promissory Note between Wells Fargo Equipment Finance, Inc. and StarTek USA, Inc., a wholly-owned subsidiary of StarTek, Inc., and the Canadian Dollar Secured Equipment Loan between Wells Fargo Equipment Finance Company, Inc. and StarTek Canada Services, Ltd., a wholly-owned subsidiary of StarTek, Inc. The loans had original maturities in November 2010. The total payoff on these loans, including pre-payment penalties, was approximately $5.7 million.
(d) Exhibits.
10.3 Promissory Note, dated June 26, 2009, between StarTek, Inc., StarTek
USA, Inc. and StarTek Canada Services, Ltd. and UMB Bank Colorado, N.A.
10.4 Business Loan Agreement, dated June 26, 2009, between StarTek, Inc.,
StarTek USA, Inc. and StarTek Canada Services, Ltd. and UMB Bank Colorado,
N.A.
10.5 Commercial Security Agreement, dated June 26, 2009, among StarTek, Inc. as
grantor, and StarTek, Inc., StarTek USA, Inc. and StarTek Canada Services,
Ltd. and UMB Bank Colorado, N.A.
10.6 Commercial Security Agreement, dated June 26, 2009, among StarTek USA, Inc.
as grantor, and StarTek, Inc., StarTek USA, Inc. and StarTek Canada
Services, Ltd. and UMB Bank Colorado, N.A.
10.7 Commercial Security Agreement, dated June 26, 2009, among StarTek Canada
Services, Ltd. as grantor, and StarTek, Inc., StarTek USA, Inc. and StarTek
Canada Services, Ltd. and UMB Bank Colorado, N.A.
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