[sheet: Cover & Summary]
Field | Value
Document Title | Funds Flow Memorandum
Transaction | $300,000,000 Senior Secured Asset-Based Revolving Credit Facility
Borrowers | Cascade Retail Holdings Inc. and Cascade Retail Operating Company LLC
Administrative Agent & Collateral Agent | Crescent Harbor Bank, N.A.
Closing Date | May 19, 2023
Credit Agreement Date | May 4, 2023 (effective May 19, 2023)
Prepared By | Calderwood & Harkness LLP
Matter No. | 1038-00002
Responsible Partner | Claudia Merritt
Lead Associate | Marcus Leung
Working Associate | Sophie Tremblay
Governing Law | State of New York
CUSIP | 14762MAA3
FUNDING SUMMARY
Aggregate Revolving Commitments | $300,000,000
Total Initial Draw at Closing | $150,000,000
Undrawn Availability Post-Closing | $150,000,000
Net Borrowing Base at Closing | $326,400,000
Effective Available Commitment (lesser of Commitments and Borrowing Base) | $300,000,000
[sheet: Sources of Funds]
Line No. | Source | Entity Full Legal Name | Role | Commitment Amount | Pro Rata Share | Funding Amount | Wire Reference
1 | Lead Arranger / Administrative Agent | Crescent Harbor Bank, National Association | Administrative Agent, Collateral Agent, Sole Lead Arranger, Sole Bookrunner | $135,000,000 | 45.00% | $67,500,000 | CHB-CRH-052023-001
2 | Syndicate Lender | Northgate Capital Bank | Syndicate Lender | $90,000,000 | 30.00% | $45,000,000 | NCB-CRH-052023-001
3 | Syndicate Lender | Bridgevale Financial Corporation | Syndicate Lender | $75,000,000 | 25.00% | $37,500,000 | BFC-CRH-052023-001
TOTAL SOURCES | $300,000,000 | 100.00% | $150,000,000
[sheet: Uses of Funds]
Wire No. | Category | Payee / Recipient | Payee Address | Purpose / Description | Amount | Receiving Bank | ABA / Routing No. | Account No. | Account Name | Wire Reference | Notes
1 | Refinancing Payoff | Harborview Lending Group, LLC | 100 Summer Street, Suite 2800, Boston, MA 02110 | Payoff of existing $175,000,000 revolving ABL facility — principal, accrued interest, and fees per Payoff Letter dated May 17, 2023 | $112,450,000 | Harborview Lending Group designated bank | XXXXXXXXX | XXXXXXXXXX | Harborview Lending Group, LLC | CRH-HLG-PAYOFF-051923 | Contact: Steven Calloway, Vice President; UCC-3 termination statements to be filed upon receipt
2 | Upfront / Arrangement Fee | Crescent Harbor Bank, N.A. | 780 Park Avenue, 30th Floor, New York, NY 10021 | Upfront/arrangement fee — 50 bps on $135,000,000 commitment | $675,000 | Crescent Harbor Bank, N.A. | XXXXXXXXX | XXXXXXXXXX | Crescent Harbor Bank, N.A. — Fee Account | CRH-CHB-UPFRONT-051923 | 45% × $300M commitment = $135M; 0.50% × $135M = $675,000
3 | Upfront / Arrangement Fee | Northgate Capital Bank | 400 Lexington Avenue, 18th Floor, New York, NY 10170 | Upfront fee — 50 bps on $90,000,000 commitment | $450,000 | Northgate Capital Bank | XXXXXXXXX | XXXXXXXXXX | Northgate Capital Bank — Fee Account | CRH-NCB-UPFRONT-051923 | 30% × $300M commitment = $90M; 0.50% × $90M = $450,000
4 | Upfront / Arrangement Fee | Bridgevale Financial Corporation | 1 Federal Street, Suite 3200, Boston, MA 02110 | Upfront fee — 50 bps on $75,000,000 commitment | $375,000 | Bridgevale Financial Corporation | XXXXXXXXX | XXXXXXXXXX | Bridgevale Financial Corporation — Fee Account | CRH-BFC-UPFRONT-051923 | 25% × $300M commitment = $75M; 0.50% × $75M = $375,000
5 | Agent Fee | Crescent Harbor Bank, N.A. | 780 Park Avenue, 30th Floor, New York, NY 10021 | Administrative Agent fee — Year 1 annual fee | $150,000 | Crescent Harbor Bank, N.A. | XXXXXXXXX | XXXXXXXXXX | Crescent Harbor Bank, N.A. — Agent Fee Account | CRH-CHB-AGENTFEE-051923 | $150,000 per annum payable to CHB as Administrative Agent
6 | Legal Fees | Calderwood & Harkness LLP | 599 Lexington Avenue, 42nd Floor, New York, NY 10022 | Borrower's counsel legal fees and disbursements | $625,000 | Calderwood & Harkness designated bank | XXXXXXXXX | XXXXXXXXXX | Calderwood & Harkness LLP — Client Trust Account | CRH-SC-LEGAL-051923 | Billing Partner: Ian Blackwood; Matter No. 1038-00002
7 | Legal Fees | Whitfield, Greer & Holloway LLP | 51 West 52nd Street, 35th Floor, New York, NY 10019 | Administrative Agent's / Lenders' counsel legal fees and disbursements | $500,000 | WGH designated bank | XXXXXXXXX | XXXXXXXXXX | Whitfield, Greer & Holloway LLP — Trust Account | CRH-WGH-LEGAL-051923 | WGH Matter No. 1038-00002; Lead Partner: Bernard Ashford
8 | Professional Fees | Ridgeline Asset Advisors LLC | 200 Vesey Street, Suite 2400, New York, NY 10281 | Inventory appraisal and accounts receivable field examination fee (report dated March 31, 2023) | $185,000 | Ridgeline designated bank | XXXXXXXXX | XXXXXXXXXX | Ridgeline Asset Advisors LLC | CRH-RAA-FIELDEXAM-051923 | Engagement Lead: Patricia Holbrook; field exam commenced March 13, 2023
9 | Filing / Miscellaneous Fees | Various | Various | UCC-1 filing fees (DE SOS ×2, WA SOS ×1), UCC-3 termination filings, good standing certificates, lien search fees, and miscellaneous closing expenses | $215,000 | Various | Various | Various | Various | CRH-MISC-FILINGS-051923 | UCC-1 filings: DE — CRH (no. 2023-1947291), DE — CROC (no. 2023-1947283), WA — COS (no. 2023-204-8176); secured party: CHB as Collateral Agent
10 | Working Capital | Cascade Retail Holdings Inc. | 2200 Elliott Avenue, Suite 1400, Seattle, WA 98121 | Working capital draw to CRH operating account at Meridian Trust Company, N.A. | $34,375,000 | Meridian Trust Company, N.A. | XXXXXXXXX | XXXXXXXXXX | Cascade Retail Holdings Inc. — Operating Account | CRH-MT-WKCAP-051923 | Meridian Trust Company, N.A., 1001 Fourth Avenue, Suite 500, Seattle, WA 98154
SUBTOTAL — Closing Costs, Fees & Expenses (Wires 2–9) | $3,175,000 | Sum of Wires 2 through 9
GRAND TOTAL USES | $150,000,000 | Total Sources ($150,000,000) = Total Uses ($150,000,000) ✓
[sheet: Reconciliation]
Line Item | Amount | Notes
SOURCES OF FUNDS
Initial revolving draw from syndicate lenders | $150,000,000 | Pro rata: CHB $67.5M (45%), NCB $45M (30%), Bridgevale $37.5M (25%)
Total Sources | $150,000,000
USES OF FUNDS
1. Payoff of existing Harborview ABL facility | $112,450,000 | Per Payoff Letter dated May 17, 2023; existing facility size $175M
2. Closing Costs, Fees & Expenses: | $3,175,000 | Subtotal of items 2a–2h below
2a. Upfront fee — Crescent Harbor Bank, N.A. | $675,000 | 50 bps × $135M commitment
2b. Upfront fee — Northgate Capital Bank | $450,000 | 50 bps × $90M commitment
2c. Upfront fee — Bridgevale Financial Corporation | $375,000 | 50 bps × $75M commitment
2d. Administrative Agent fee (Year 1) — CHB | $150,000 | $150,000/yr payable to CHB
2e. Legal fees — Calderwood & Harkness LLP | $625,000 | Borrower's counsel; Matter No. 1038-00002
2f. Legal fees — Whitfield, Greer & Holloway LLP | $500,000 | Agent's / Lenders' counsel; Matter No. 1038-00002
2g. Appraisal / Field exam — Ridgeline Asset Advisors LLC | $185,000 | Report dated March 31, 2023
2h. UCC filings, lien searches, good standings, and misc. | $215,000 | DE (×2) and WA (×1) UCC-1 filings; UCC-3 terminations; lien searches
Subtotal — Upfront/Arrangement Fees | $1,500,000 | $675K + $450K + $375K = $1,500,000
Subtotal — All Closing Costs/Fees/Expenses | $3,175,000 | Items 2a through 2h
3. Working capital to CRH operating account | $34,375,000 | Deposited at Meridian Trust Company, N.A.
Total Uses | $150,000,000 | $112,450,000 + $3,175,000 + $34,375,000 = $150,000,000
RECONCILIATION
Total Sources minus Total Uses | $0 | Sources ($150,000,000) − Uses ($150,000,000) = $0 — Balanced ✓
POST-FUNDING POSITION
Aggregate Revolving Commitments | $300,000,000
Less: Outstanding Revolving Loans | ($150,000,000) | Initial draw
Less: Outstanding Letters of Credit | $0 | None at closing; LC sublimit = $40,000,000
Less: Outstanding Swingline Loans | $0 | None at closing; Swingline sublimit = $25,000,000
Undrawn Availability | $150,000,000 | $300M − $150M = $150,000,000
Net Borrowing Base | $326,400,000 | Gross BB $350,050,000 less reserves $23,650,000
Excess Availability over Outstanding | $176,400,000 | $326,400,000 − $150,000,000 = $176,400,000
[sheet: Borrowing Base Summary]
Component | Amount | Rate / Factor | Advance Amount | Notes
Eligible Receivables | $187,000,000 | 85% | $158,950,000 | Per Ridgeline field exam report dated March 31, 2023; updated at closing
Eligible Inventory (NOLV) | $294,000,000 | 65% | $191,100,000 | Per Ridgeline appraisal report dated March 31, 2023; updated at closing
Gross Borrowing Base | $350,050,000 | $158,950,000 + $191,100,000
Less: Availability Reserves | ($23,650,000) | Rent reserves, gift card reserves, dilution reserves, and other reserves
Net Borrowing Base | $326,400,000 | $350,050,000 − $23,650,000
Aggregate Revolving Commitments | $300,000,000 | Per Credit Agreement
Available Commitment (lesser of Commitments and BB) | $300,000,000 | MIN($300,000,000, $326,400,000) = $300,000,000
Initial Draw | ($150,000,000) | Total uses per this Funds Flow Memorandum
Remaining Availability | $150,000,000 | $300,000,000 − $150,000,000
Certified by: | Priya Anand, Treasurer, Cascade Retail Holdings Inc.
Borrowing Base Certificate dated: | May 19, 2023
[sheet: Wire Instructions]
Wire No. | Payee | Payee Contact | Payee Address | Receiving Bank Name | Receiving Bank Address | ABA / Routing Number | Account Number | Account Name | SWIFT Code | Wire Reference / Memo | Amount
1 | Harborview Lending Group, LLC | Steven Calloway, Vice President | 100 Summer Street, Suite 2800, Boston, MA 02110 | [Per Payoff Letter] | [Per Payoff Letter] | [Per Payoff Letter] | [Per Payoff Letter] | Harborview Lending Group, LLC | N/A | CRH ABL Payoff — Closing 05/19/2023 | $112,450,000
2 | Crescent Harbor Bank, N.A. (Upfront Fee) | Thomas Reiland, Managing Director / Julianne Strickland, VP | 780 Park Avenue, 30th Floor, New York, NY 10021 | Crescent Harbor Bank, N.A. | [Address] | [ABA] | [Acct No.] | CHB Fee Account | N/A | CRH Upfront/Arrangement Fee | $675,000
3 | Northgate Capital Bank (Upfront Fee) | Rajesh Mehta, Director | 400 Lexington Avenue, 18th Floor, New York, NY 10170 | Northgate Capital Bank | [Address] | [ABA] | [Acct No.] | NCB Fee Account | N/A | CRH Upfront Fee | $450,000
4 | Bridgevale Financial Corporation (Upfront Fee) | Catherine Aldridge, Senior Vice President | 1 Federal Street, Suite 3200, Boston, MA 02110 | Bridgevale Financial Corporation | [Address] | [ABA] | [Acct No.] | Bridgevale Fee Account | N/A | CRH Upfront Fee | $375,000
5 | Crescent Harbor Bank, N.A. (Agent Fee) | Julianne Strickland, VP | 780 Park Avenue, 30th Floor, New York, NY 10021 | Crescent Harbor Bank, N.A. | [Address] | [ABA] | [Acct No.] | CHB Agent Fee Account | N/A | CRH Annual Agent Fee — Year 1 | $150,000
6 | Calderwood & Harkness LLP | Claudia Merritt / Ian Blackwood | 599 Lexington Avenue, 42nd Floor, New York, NY 10022 | [C&H Trust Account Bank] | [Address] | [ABA] | [Acct No.] | Calderwood & Harkness LLP Client Trust Account | N/A | CRH Legal Fees — Matter No. 1038-00002 | $625,000
7 | Whitfield, Greer & Holloway LLP | Bernard Ashford | 51 West 52nd Street, 35th Floor, New York, NY 10019 | [WGH Trust Account Bank] | [Address] | [ABA] | [Acct No.] | WGH Trust Account | N/A | CRH Lenders' Counsel Fees — Matter No. 1038-00002 | $500,000
8 | Ridgeline Asset Advisors LLC | Patricia Holbrook | 200 Vesey Street, Suite 2400, New York, NY 10281 | [Ridgeline Bank] | [Address] | [ABA] | [Acct No.] | Ridgeline Asset Advisors LLC | N/A | CRH Field Exam/Appraisal Fee | $185,000
9 | Various (UCC Filings, Lien Searches, Misc.) | Marcus Leung / Sophie Tremblay (C&H) | Various | Various | Various | Various | Various | Various | N/A | CRH UCC/Filing/Misc. Fees | $215,000
10 | Cascade Retail Holdings Inc. (Working Capital) | Priya Anand, Treasurer | 2200 Elliott Avenue, Suite 1400, Seattle, WA 98121 | Meridian Trust Company, N.A. | 1001 Fourth Avenue, Suite 500, Seattle, WA 98154 | [ABA] | [Acct No.] | Cascade Retail Holdings Inc. — Operating Account | N/A | CRH Working Capital — Closing Draw | $34,375,000
TOTAL — ALL WIRES | $150,000,000