Summary by Moomoo AI
Innodata has entered into a second amendment to its Credit Agreement with Wells Fargo Bank on August 5, 2024, significantly expanding its secured revolving line of credit. The amended facility increases the maximum credit limit to $30 million, with potential further expansion up to $50 million subject to lender approval. The agreement involves Innodata and its subsidiaries Synodex, Docgenix, Agility PR Solutions, and Innodata Services as borrowers.The borrowing base calculation under the new agreement is structured on multiple factors, including 85% of eligible accounts, 80% of eligible unbilled accounts (capped at 30% of total eligible accounts), and 85% of eligible foreign accounts (subject to specific limits). As of June 30, 2024, the calculated borrowing base was approximately $12.4 million.The expanded credit facility is strategically positioned to support Innodata's anticipated growth with new and existing customers, with the company expecting increases in accounts receivables to enhance the borrowing base calculation under the facility.
