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Contract analysis / borrowing-base-certificate-closing.xlsx

borrowing-base-certificate-closing.xlsx

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1. Total Accounts Receivable (gross) | Schedule A-1 | 225000000 | Gross book value of all

1. Total Accounts Receivable (gross) | Schedule A-1 | 225000000 | Gross book value of all accounts

2. Less: Ineligible Receivables | Schedule A-2 | -38000000 | Includes aged >90 days, conce

2. Less: Ineligible Receivables | Schedule A-2 | -38000000 | Includes aged >90 days, concentrations, cross-aged, foreign, intercompany, government, contra

3. Eligible Receivables | Line 1 + Line 2 | 187000000 | Per Ridgeline Asset Advisors LLC f

3. Eligible Receivables | Line 1 + Line 2 | 187000000 | Per Ridgeline Asset Advisors LLC field exam report dated March 31, 2023

4. Receivables Advance Rate | 0.85 | 85%

4. Receivables Advance Rate | 0.85 | 85%

5. Receivables Borrowing Base Component | Line 3 × Line 4 | 158950000 | 85% × $187,000,000

5. Receivables Borrowing Base Component | Line 3 × Line 4 | 158950000 | 85% × $187,000,000 SECTION B: INVENTORY

6. Total Inventory (gross, at cost) | Schedule B-1 | 412000000 | Gross book value of all i

6. Total Inventory (gross, at cost) | Schedule B-1 | 412000000 | Gross book value of all inventory

7. Less: Ineligible Inventory | Schedule B-2 | -72000000 | Includes slow-moving, damaged,

7. Less: Ineligible Inventory | Schedule B-2 | -72000000 | Includes slow-moving, damaged, in-transit >45 days, consigned, not at permitted locations

8. Eligible Inventory (at cost) | Line 6 + Line 7 | 340000000

8. Eligible Inventory (at cost) | Line 6 + Line 7 | 340000000

9. Net Orderly Liquidation Value (NOLV) of Eligible Inventory | Schedule B-3 | 294000000 |

9. Net Orderly Liquidation Value (NOLV) of Eligible Inventory | Schedule B-3 | 294000000 | Per Ridgeline Asset Advisors LLC appraisal report dated March 31, 2023

10. Inventory Advance Rate (applied to NOLV) | 0.65 | 65% of NOLV

10. Inventory Advance Rate (applied to NOLV) | 0.65 | 65% of NOLV

11. Inventory Borrowing Base Component | Line 9 × Line 10 | 191100000 | 65% × $294,000,000

11. Inventory Borrowing Base Component | Line 9 × Line 10 | 191100000 | 65% × $294,000,000 SECTION C: GROSS BORROWING BASE

12. Gross Borrowing Base | Line 5 + Line 11 | 350050000 | $158,950,000 + $191,100,000

12. Gross Borrowing Base | Line 5 + Line 11 | 350050000 | $158,950,000 + $191,100,000 SECTION D: AVAILABILITY RESERVES

13. Rent Reserve | Schedule D-1 | 8200000 | 3 months' rent for leased locations

13. Rent Reserve | Schedule D-1 | 8200000 | 3 months' rent for leased locations

14. Gift Card / Stored Value Reserve | Schedule D-2 | 5100000 | Outstanding gift card liab

14. Gift Card / Stored Value Reserve | Schedule D-2 | 5100000 | Outstanding gift card liabilities

15. Dilution Reserve | Schedule D-3 | 6350000 | Based on historical dilution rate applied

15. Dilution Reserve | Schedule D-3 | 6350000 | Based on historical dilution rate applied to eligible receivables

16. Customer Deposit / Credit Reserve | Schedule D-4 | 2500000

16. Customer Deposit / Credit Reserve | Schedule D-4 | 2500000

17. Other Reserves (tax liens, insurance, etc.) | Schedule D-5 | 1500000

17. Other Reserves (tax liens, insurance, etc.) | Schedule D-5 | 1500000

18. Total Availability Reserves | Sum of Lines 13–17 | 23650000

18. Total Availability Reserves | Sum of Lines 13–17 | 23650000 SECTION E: NET BORROWING BASE & AVAILABLE COMMITMENT

19. Net Borrowing Base | Line 12 − Line 18 | 326400000 | $350,050,000 − $23,650,000

19. Net Borrowing Base | Line 12 − Line 18 | 326400000 | $350,050,000 − $23,650,000

20. Aggregate Revolving Commitments | Per Credit Agreement | 300000000

20. Aggregate Revolving Commitments | Per Credit Agreement | 300000000

21. Available Commitment (lesser of Line 19 and Line 20) | Min(Line 19, Line 20) | 3000000

21. Available Commitment (lesser of Line 19 and Line 20) | Min(Line 19, Line 20) | 300000000 | Min($326,400,000, $300,000,000) SECTION F: USAGE & EXCESS AVAILABILITY

22. Outstanding Revolving Loans (closing date draw) | 150000000 | Initial draw at closing

22. Outstanding Revolving Loans (closing date draw) | 150000000 | Initial draw at closing

23. Outstanding Letters of Credit | 0 | None outstanding at closing

23. Outstanding Letters of Credit | 0 | None outstanding at closing

24. Outstanding Swingline Loans | 0 | None outstanding at closing

24. Outstanding Swingline Loans | 0 | None outstanding at closing

25. Total Outstandings | Sum of Lines 22–24 | 150000000

25. Total Outstandings | Sum of Lines 22–24 | 150000000

26. Excess Availability (Undrawn) | Line 21 − Line 25 | 150000000 | $300,000,000 − $150,00

26. Excess Availability (Undrawn) | Line 21 − Line 25 | 150000000 | $300,000,000 − $150,000,000 SECTION G: COVENANT TRIGGER ANALYSIS

27. FCCR Trigger Threshold | Greater of (a) 10% × Min(Commitments, BB) and (b) $25M | 3000

27. FCCR Trigger Threshold | Greater of (a) 10% × Min(Commitments, BB) and (b) $25M | 30000000 | 10% × $300,000,000 = $30,000,000 > $25,000,000

28. Availability vs. FCCR Trigger | Line 26 vs. Line 27 | PASS | $150,000,000 > $30,000,00

28. Availability vs. FCCR Trigger | Line 26 vs. Line 27 | PASS | $150,000,000 > $30,000,000 — FCCR testing NOT required

29. Cash Dominion Trigger Threshold | 12.5% × Min(Commitments, BB) | 37500000 | 12.5% × $3

29. Cash Dominion Trigger Threshold | 12.5% × Min(Commitments, BB) | 37500000 | 12.5% × $300,000,000

30. Availability vs. Cash Dominion Trigger | Line 26 vs. Line 29 | PASS | $150,000,000 > $

30. Availability vs. Cash Dominion Trigger | Line 26 vs. Line 29 | PASS | $150,000,000 > $37,500,000 — Cash dominion NOT triggered

31. Restricted Payment Availability Threshold | 15% × Min(Commitments, BB) | 45000000 | 15

31. Restricted Payment Availability Threshold | 15% × Min(Commitments, BB) | 45000000 | 15% × $300,000,000

32. Availability vs. Restricted Payment Threshold | Line 26 vs. Line 31 | PASS | $150,000, Standard

⚑ Commercial term