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Spark Networks SE (LOVLQ) RSS Feed

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Created
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Canaan VIII L.P. , Recent Transactions: 

(Sold all remaining shares on 11/19/21

Annex I 
Information with Respect to Transactions during the Past 60 Days 

Date 
Transaction 

Shares 

Price/Share ($) 
11/19/2021 
Sell 16,801 $2.40 
11/19/2021 
Sell 1,452,979 $2.50 


https://www.otcmarkets.com/filing/html?id=15373552&guid=a7ywk6ImV7wyvOh 

SEC Filings 
SC 13D/A 11/22/2021 
SC 13D/A 11/19/2021 
10-Q 11/15/2021 09/30/2021 
8-K 11/15/2021 11/15/2021 
SC 13D/A 11/10/2021 
SC 13D/A 10/26/2021 
4 09/24/2021 09/22/2021 
4 09/14/2021 09/14/2021 
4 09/08/2021 09/07/2021 
4 09/03/2021 01/13/2021 
https://www.otcmarkets.com/stock/LOV/disclosure"


Here is likely why they were selling :  Too much long term debt:

"
Assets        
Current assets:        
Cash and cash equivalents   $ 12,440      $ 19,267   
Accounts receivable, net of allowance of $435 and $93, respectively
  7,135      5,507   
Prepaid expenses   3,936      4,366   
Other current assets   1,059      2,140   
Total current assets   24,570      31,280   
Property and equipment, net of accumulated depreciation of $6,204 and $6,252, respectively   9,982      11,418   
Goodwill   134,759      156,582   
Intangible assets, net of accumulated amortization of $15,159 and $18,631, respectively   44,834      58,999   
Deferred tax assets   5,697      23,522   
Other assets   8,521      8,642   
Total assets   $ 228,363      $ 290,443   
Liabilities and Shareholders' Equity        
Current liabilities:        
Current portion of long-term debt   $ 12,600      $ 19,037   
Accounts payable   10,828      11,127   
Deferred revenue   40,479      38,304   
Accrued expenses and other current liabilities   26,738      28,429   
Total current liabilities   90,645      96,897   
Long-term debt, net of current portion   72,067      80,109   
Deferred tax liabilities   6,382      993   
Other liabilities   18,120      17,541   
Total liabilities   187,214      195,540 
 


Note 6. Long-term Debt
 
On July 1, 2019, in connection with the acquisition of Zoosk, the Company entered into a Loan Agreement with Zoosk, Spark Networks, Inc., the subsidiary guarantors party thereto, the lenders party thereto, and Blue Torch Finance LLC ("Administrative Agent"), as administrative agent and collateral agent (the "Senior Secured Facilities Agreement") that provides for a four-year $125.0 million Senior Secured Facility, maturing July 1, 2023 (the "Maturity Date"). The Senior Secured Facilities Agreement provides for a term loan facility in an aggregate amount equal to $120.0 million (the "Term Loan Facility") and a revolving 
11

 
credit facility in an aggregate amount equal to $5.0 million (the "Revolving Credit Facility" and, together with the Term Loan Facility, the "Facilities"). Borrowings under the Facilities bear interest at a rate equal to either LIBOR plus an applicable margin of 8.0% per annum. 
 
Term Loan Facility
 
On December 2, 2020, the Company entered into the Second Amendment to Loan Agreement (the "Second Amendment" and together with the Term Loan Facility, the "Amended Term Loan Facility"), which established an additional $6.0 million of term loan commitment to its existing Term Loan Facility. The additional borrowing was applied to pay the quarterly Term Loan Facility principal and interest payments on December 31, 2020 and March 31, 2021. The Second Amendment was accounted for as a modification of debt, and as such, the third-party costs incurred in connection with the Second Amendment of approximately $1.3 million were expensed as incurred. The debt issuance costs of $1.3 million that were paid directly to the lender at the closing date were capitalized and will be amortized using the effective interest method over the term of the loan. The effective interest rate on the modified loan is 11.3%. The Second Amendment requires repayment of the principal amount of $0.15 million quarterly, beginning on March 31, 2021, in addition to the $3.0 million quarterly principal repayment of the original Term Loan Facility and the modified interest. 
 
On March 5, 2021, the Company entered into a Limited Waiver under Loan Agreement (the "Limited Waiver") with the Administrative Agent and the lenders pursuant to which certain defaults under the Senior Secured Facilities Agreement were waived. In consideration of the Limited Waiver, the Company agreed to pay the Administrative Agent, for the ratable benefit of the lenders, a fee of $0.5 million upon the execution of the Limited Waiver, plus $0.3 million paid in kind by capitalizing such amount into the principal balance under the Senior Secured Facilities Agreement. The aggregated fees were capitalized and will be amortized using the effective interest rate of 11.8%. The aggregated outstanding principal balance of the existing Term Loan Facility and the Second Amendment is $88.7 million and $104.7 million as of September 30, 2021 and December 31, 2020, respectively. The amortized cost basis of the Amended Term Loan Facility is $84.7 million and $99.1 million as of September 30, 2021 and December 31, 2020, respectively. 
 
In addition, pursuant to the terms of the Amended Term Loan Facility, within 5 days after the annual financial statements are required to be delivered to the lender, the Company is required to make a prepayment of the loan principal in an amount equal to a percentage of the excess cash flow, as defined in the Term Loan Facilities, of the most recently completed fiscal year. For the nine months ended September 30, 2021 and 2020, the Company made a prepayment of $6.8 million and $3.3 million, respectively.
 
Revolving Credit Facility
 
The $5.0 million Revolving Credit Facility has a commitment fee of 0.75% per annum on the unutilized commitments thereunder payable on the Maturity Date. As the Revolving Credit Facility is not expected to be drawn down, transaction costs and upfront fees totaling $0.3 million related to the Revolving Credit Facility were deferred and are being amortized over the term of the agreement. There were no outstanding borrowings under the Revolving Credit Facility as of September 30, 2021 and December 31, 2020.
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