SECsense Logo
<!-- Icon from Material Symbols by Google - https://github.com/google/material-design-icons/blob/master/LICENSE -->Back to Posts

CTD Holdings, Inc. 2013 Financial Report: Strategic Debt Refinancing Insights

$CYTHW
8-K
Filed on: 2013-07-26
View Source
CTD Holdingsfinancial restructuringdebt refinancingequipment financingbiotechnology
CTD Holdings, Inc. 2013 Financial Report: Strategic Debt Refinancing Insights

Here are the key insights extracted from the financial report (Form 8-K) filed by CTD Holdings, Inc. on July 22, 2013:

  1. Company Overview:
  • Name: CTD Holdings, Inc.
  • Incorporation: Florida
  • IRS Employer Identification No.: 59-3029743
  • Principal Executive Office Address: 14120 N.W. 126th Terrace, Alachua, Florida, 32615.
  • Contact Number: (386) 418-8060
  1. Event Date: July 22, 2013 (date of the earliest event reported).
  2. Material Definitive Agreements:
  • Refinancing of Existing Indebtedness: The company refinanced its existing debts through three new loans from Region's Bank.
  1. Loan Details:
  • Mortgage Loan:
    • Amount: $578,998
    • Interest Rate: 3.99% (annual)
    • Amortization: 20 years with a balloon payment due after 10 years.
    • Monthly Payments: Approximately $3,505.
    • Prepayment Penalties: 5% to 1% during the first five years.
    • Debt Service Coverage Requirement: Minimum EBITDA to interest expense ratio of 1.3x measured annually.
  • Equipment Loan:
    • Amount: $295,890
    • Interest Rate: 3.99% (annual)
    • Maturity: July 2020.
    • Monthly Payments: Approximately $4,051.
    • Prepayment Penalty: 2% during the first five years.
    • Security: All equipment, whether now owned or later acquired.
  • Line of Credit:
    • Amount: $100,000.
    • Interest Rate: Prime rate plus 1.8%.
    • Monthly Payments: Interest only on outstanding amounts.
    • Principal and interest due on demand or by July 17, 2014.
    • Initial Drawdown: Approximately $41,694.
  1. Guarantees:
  • Loans are guaranteed by subsidiaries: Nanosonic Products, Inc., Cyclodextrin Technologies Development, Inc., and Sphingo Biotech, Inc.
  • Personal guarantees were executed by CEO C.E. Rick Strattan and his spouse.
  1. Use of Proceeds:
  • The proceeds from the loans were used to repay existing debts including:
    • Private mortgage note to Damon and Danielle Stone.
    • Equipment loan with SunState Federal Credit Union.
    • Contractor financing related to the installation of a pulse dryer and solar electric system.
    • Previous revolving line of credit with SunState Federal Credit Union.
  1. No Off-Balance Sheet Liabilities: The transactions did not involve off-balance sheet arrangements as defined by SEC regulations.

This report indicates a strategic restructuring of CTD Holdings, Inc.’s debt to improve financial stability and reduce interest obligations through refinancing, while also ensuring that the company meets necessary financial covenants going forward.

You May Also Like