Quarterly report pursuant to Section 13 or 15(d)

Bank and Other Borrowings

v3.21.1
Bank and Other Borrowings
3 Months Ended
Mar. 31, 2021
Bank And Other Borrowings [Abstract]  
Bank and Other Borrowings

7. BANK AND OTHER BORROWINGS

Credit line facilities

As of March 31, 2021, the Company had credit line facilities granted for a total amount of $7.5 million, of which $4.4 million had been used. As of December 31, 2020, the Company had available credit line facilities for $7.7 million, of which $5.3 million had been used.

The credit lines denominated in Euro may be drawn upon at variable interest rates in the following range: 0.6% - 7.6%. The weighted average interest rate on the credit line facilities outstanding as of March 31, 2021, was 1.11%.

Long-term bank and other borrowings

Long-term bank and other borrowings consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Interest Nominal Rate

 

 

 

As of

March 31,

 

 

As of

December 31,

 

 

 

 

Interest

 

 

As of

March 31,

 

 

As of

December 31,

 

 

 

2021

 

 

2020

 

 

Maturity

 

Contractual Rate

 

 

2021

 

 

2020

 

UniCredit S.p.A.

   (Line A Tranche (1)

 

$

2,750

 

 

$

3,235

 

 

July 2023

 

Euribor 3 months + 3.10%

 

 

 

2.80

%

 

 

2.80

%

UniCredit S.p.A.

   (Line A Tranche (2)

 

 

132

 

 

 

153

 

 

November 2023

 

Euribor 3 months + 3.10%

 

 

 

2.80

%

 

 

2.80

%

UniCredit S.p.A. (Line B)

 

 

2,656

 

 

 

3,030

 

 

May 2024

 

Euribor 3 months + 2.90%

 

 

 

2.60

%

 

 

2.60

%

UniCredit S.p.A. (Line C)

 

 

2,153

 

 

 

2,521

 

 

August 2023

 

Euribor 3 months + 3.90%

 

 

 

3.36

%

 

 

3.36

%

Intesa Sanpaolo S.p.A.

   (Line 1)

 

 

744

 

 

 

931

 

 

April 2022

 

Euribor 3 months + 1.80%

 

 

 

1.26

%

 

 

1.26

%

Intesa Sanpaolo S.p.A.

   (Line 2)

 

 

3,824

 

 

 

4,292

 

 

April 2024

 

Euribor 3 months + 2.60%

 

 

 

2.06

%

 

 

2.06

%

Intesa Sanpaolo S.p.A.

   (Line 3)

 

 

9,265

 

 

 

9,688

 

 

June 2026

 

Euribor 3 months + 1.65%

 

 

 

1.11

%

 

 

1.11

%

Intesa Sanpaolo S.p.A.

   (Line 4)

 

 

6,439

 

 

 

6,734

 

 

July 2026

 

Euribor 3 months + 1.70%

 

 

 

1.16

%

 

 

1.16

%

UBI Banca S.p.A. (Line 1)

 

 

125

 

 

 

209

 

 

August 2021

 

Euribor 3 months + 1.25%

 

 

 

1.25

%

 

 

1.25

%

UBI Banca S.p.A. (Line 2)

 

 

692

 

 

 

1,031

 

 

October 2021

 

Euribor 3 months +1.95%

 

 

 

1.41

%

 

 

1.41

%

Monte dei Paschi di

   Siena S.p.A. (Line 1)

 

 

256

 

 

 

328

 

 

April 2022

 

 

0.95

%

 

 

0.95

%

 

 

0.95

%

Monte dei Paschi di

   Siena S.p.A. (Line 2)

 

 

1,949

 

 

 

2,037

 

 

June 2023

 

 

1.50

%

 

 

1.50

%

 

 

1.50

%

Banco BPM S.p.A. (Line 1)

 

 

912

 

 

 

1,056

 

 

June 2023

 

Euribor 3 months + 2.00%

 

 

 

2.00

%

 

 

2.00

%

Banco BPM S.p.A. (Line 3)

 

 

6,086

 

 

 

6,355

 

 

September 2024

 

Euribor 3 months + 3.00%

 

 

 

2.46

%

 

 

2.46

%

Simest 1

 

 

293

 

 

 

307

 

 

December 2023

 

 

0.50

%

 

 

0.50

%

 

 

0.50

%

Simest 2

 

 

291

 

 

 

305

 

 

December 2023

 

 

0.50

%

 

 

0.50

%

 

 

0.50

%

Simest 3

 

 

535

 

 

 

560

 

 

December 2023

 

 

0.50

%

 

 

0.50

%

 

 

0.50

%

Total bank and other borrowings

 

 

39,102

 

 

 

42,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: current portion

 

 

8,082

 

 

 

10,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-term portion

 

$

31,020

 

 

$

31,974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All bank and other borrowings are unsecured borrowings of Kaleyra.

On February 23, 2021, Kaleyra entered into an amendment to the existing unsecured loan agreement with Intesa Sanpaolo S.p.A. (the “Intesa Sanpaolo S.p.A. - Line 1”) and an amendment to the existing unsecured loan agreement with Intesa Sanpaolo S.p.A. (the “Intesa Sanpaolo S.p.A. - Line 2”). The amendments each provide that certain financial covenants be amended in order to make them less restrictive to the Company, in particular as they relate to the previously agreed net financial position/equity ratio and the net financial position/gross operating income ratio.

On March 9, 2021 and March 10, 2021, respectively, Kaleyra received the approval by UniCredit S.p.A. to postpone repayment of the principal amounts due under the existing Line A Tranche (2), Line B and Line C of the long-term financing agreements with UniCredit S.p.A. for a period of six (6) months starting from March 1, 2021 until August 8, 2021, and under Line A Tranche (1) of the long-term financing agreement with UniCredit S.p.A. starting from February 1, 2021 until July 31, 2021. Consequently, the repayment schedule under all financing agreements mentioned above has been extended for the period equal to that of the six (6) month suspension period.

Subsequent to March 31, 2021, Kaleyra received the approval by Banco Popolare di Milano S.p.A. to postpone repayment of the principal amounts due under the existing Line 3 of the long-term financing agreement with Banco Popolare di Milano S.p.A. for a period of six (6) months starting from March 31, 2021 until September 30, 2021. See Note 21 – Subsequent Events – for further details.

Subsequent to March 31, 2021, Kaleyra entered into a new general unsecured loan agreement with Simest S.p.A. for a total of $3.6 million (€3.0 million at the April 15, 2021 exchange rate). See Note 21 – Subsequent Events – for further details.

As of March 31, 2021, all of the available long-term facilities were drawn in full.

Interest expense on bank and other borrowings was $190,000 for the three months ended March 31, 2021 and $218,000 for the three months ended March 31, 2020.

As of March 31, 2021, the Company is obliged to make payments as follows (in thousands):

 

 

 

As of

March 31, 2021

 

2021 (remaining nine months)

 

$

5,807

 

2022

 

 

10,819

 

2023

 

 

10,537

 

2024

 

 

6,160

 

2025

 

 

3,626

 

2026 and thereafter

 

 

2,153

 

Total

 

$

39,102