ITEM 1.01. - Entry into a Material Definitive Agreement.
On May 19, 2014, Deep Down, Inc., a Nevada corporation ("Deep Down" and
"Company") entered into the Sixth Amendment to Amended and Restated Credit
Agreement ("Sixth Amendment") with Whitney Bank, a Mississippi state charted
bank ("Whitney"). Under the Sixth Amendment, Whitney agreed to extend the
maturity date of the revolving credit facility ("Revolving Credit Facility") to
June 30, 2015 at an interest rate of 3.5% per annum. As of the effective date of
the Sixth Amendment, the outstanding indebtedness under the Revolving Credit
Facility was $0.
Moreover, under the Sixth Amendment, Whitney agreed to make a new single-advance
term loan to Deep Down in the original principal amount of $2,200,000 ("Carousel
Term Loan") to fund the outstanding portion of the purchase price of a portable
umbilical carousel. The Carousel Term Loan has an interest rate of 3.5% per
annum and maturity date of October 15, 2016, and the Company is obligated to
make monthly repayments of principal (along with accrued and unpaid interest
thereon) of the Carousel Term Loan in the amount of $65,000 beginning July 1,
2014. As with Deep Down's other outstanding indebtedness under the credit
agreement, outstanding amounts of the Carousel Term Loan are secured by a
security interest in all of the Company's assets.
The foregoing summary does not purport to be complete and is subject to, and
qualified in its entirety by, the full text of the documents that are filed as
exhibits hereto, which are incorporated herein by reference.
ITEM 9.01 - Financial Statements and Exhibits.
10.1 Sixth Amendment to Amended and Restated Credit Agreement, dated as of
April 15, 2014, by and among Deep Down, Inc. and Whitney Bank.
10.2 Carousel Term Note, dated as of April 15, 2014, made by Deep Down, Inc.
to the order of Whitney Bank.