Business Context and Reporting Period
This Form 8-K filing by Evercore Partners Inc. (Evercore) reports a corporate event dated June 27, 2013. The filing details the establishment of a new credit facility by Evercore Partners Services East L.L.C., a subsidiary of the Company.
Key Financial Metrics
- New Credit Facility: $25 million line of credit obtained from First Republic Bank (FRB).
- Interest Rate: Prime rate as published in The Wall Street Journal.
- Maturity Date: June 27, 2014 (subject to renewal or extension).
- Collateral: Secured by cash and cash equivalents, intercompany receivables, and third-party accounts receivable of the broker-dealer subsidiary.
- Guarantors: Evercore LP and Evercore Group Holdings L.P.
- Revenue/Profit/Cash Flow: The filing text does not provide a clear value for revenue, profit, cash flow, margins, or existing debt levels.
Material Changes
The primary material change is the addition of a $25 million liquidity facility. Proceeds may be used for working capital, general corporate purposes, and the repurchase of the Company's stock. The facility is subject to a borrowing base based on eligible receivables and cash equivalents.
Outlook, Risks, and Covenants
- Covenants: Includes customary affirmative and negative covenants, specifically restricting the Borrower's ability to incur certain debt (with exceptions for unsecured debt in the ordinary course of business).
- Paydown Requirement: The Borrower must cause the balance to be paid down in full for 30 consecutive days at least once prior to the maturity date.
- Events of Default: Includes failure to pay principal or interest when due.
- Termination: The Borrower may terminate the facility at any time upon repayment of outstanding amounts plus accrued interest and fees.
Investor Verification Checklist
- Verify the current utilization rate of the new $25 million facility.
- Confirm the impact of the new debt covenants on future capital raising activities.
- Monitor the Company's stock repurchase activity funded by this facility.
- Review the upcoming 30-day paydown requirement schedule prior to the June 2014 maturity.