Term Loan

3 Months Ended

Mar. 31, 2023

Term Loan [Abstract]

Term Loan

7. Term Loan

On April 28, 2020, the Company entered into a Loan and Security Agreement (the Loan Agreement) as amended on July 8, 2020, September 14, 2020, September 15, 2020, October 21, 2022 and December 2, 2022 (the 2022 Amendment) with Pacific Western Bank (PacWest).

On March 13, 2023, the Company and PacWest executed a letter agreeing that, notwithstanding the covenants included in the 2022 Loan Amendment, until June 30, 2023 (i) the Company and its subsidiaries will not be required to maintain the lesser of $200 million or seventy percent (70%) of its combined balances in demand deposit accounts, money market funds and/or insured cash sweep (ICS) accounts with PacWest and (ii) the Company must maintain its combined balances at PacWest or its affiliates, including Pacific Western Asset Management (the Letter). At all times following June 30, 2023, the Company will again be required to comply with the terms of the 2022 Loan Amendment. Upon executing this letter, the Company wired $187.2 million from its insured cash sweep (ICS) accounts at PacWest to Pacific Western Asset Management who subsequently invested the funds into money market funds held in custody with U.S. Bank National Association. The Company’s remaining balance of funds held in demand deposit accounts and ICS accounts with PacWest is approximately $2.9 million as of March 31, 2023.

As of March 31, 2023, the Company has $10.6 million available under the Loan Agreement. Additionally, as of the date of this Quarterly Report on Form 10-Q, the Company is in compliance with such covenants and had no indebtedness outstanding under the Loan Agreement.