Entry into a Material Definitive Agreement
As previously disclosed in the Current Report on Form
filed by Revolution Lighting Technologies, Inc. (the
Company) on November 26, 2018, Robert V. LaPenta, Sr., the Companys Chairman, CEO and President, and his affiliate, Aston Capital, LLC (Aston), have funded the Company through continued periodic loans, and the
Company has issued a consolidated note, dated as of November 21, 2018, to Mr. LaPenta and Aston (the Consolidated Note) to reflect these loans made to the Company. As previously disclosed, between the date of the Consolidated
Note and February 7, 2019, Mr. La Penta has also made additional loans to the Company with an aggregate principal amount of $4.0 million.
On February 8, 2019, Mr. LaPenta loaned the Company an additional $2.0 million, and the Company issued to Mr. LaPenta a new promissory
note (the Note) with an aggregate principal amount of $2.0 million. The Audit Committee of the Companys Board of Directors approved the terms of the Note on February 7, 2019.
The Company applied the $2.0 million in proceeds from the Note to the outstanding balance under its Loan and Security Agreement with Bank of America,
N.A. (the Loan Agreement). As of February 8, 2019, after the application of such proceeds, the Company had total debt of approximately $68.2 million, including approximately $44.4 million in aggregate principal and
interest under loans from Mr. LaPenta and Aston.
The terms of the Note are substantially identical to those contained in the Consolidated Note. The
Note is scheduled to mature on July 20, 2020. Interest on the Note is payable on the first business day of each month, commencing on March 1, 2019, and is equal to the greater of (i) LIBOR plus 3.75% and (ii) the rate in effect
at any time under the Loan Agreement. The Note is secured by a lien on the Companys and its subsidiaries assets and is guaranteed by the Companys subsidiaries.
The Note contains customary events of default. Upon the occurrence of an event of default, any outstanding amounts under the Note may be accelerated;
provided, however, that upon the occurrence of certain bankruptcy, insolvency or liquidation-related events of default, all amounts payable under the Note will automatically become immediately due and payable.
The foregoing description of the Note is not complete and is qualified in its entirety by reference to the full text of the Note, which is attached to this
as Exhibit 99.1 and is incorporated herein by reference.