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TRUECAR, INC. FILES (8-K) Disclosing Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

July 16, 2014



Item 1.01 Entry into a Material Definitive Agreement.

On July 10, 2014, TrueCar, Inc. (the "Company") entered into an office building lease (the "Lease") with Mani Brothers Portofino Plaza (DE), LLC (the "Landlord") to lease approximately 33,700 square feet located at 1401 Ocean Avenue, Santa Monica, California (the "Premises") commencing on January 1, 2015 (the "Lease Commencement Date").

Under the terms of the agreement, approximately 16,700 square feet will be leased for 15 years from the Lease Commencement Date. Additional expansion spaces totaling approximately 17,000 square feet will be leased for 10 years from the Lease Commencement Date. The Company has the option to extend the Lease for a total term of twenty years. Annual base rent for fiscal year 2015 will be approximately $2.2 million, and the cumulative base rent for the initial lease term will be approximately $36.3 million, reflecting annual rent increases of 3%.

In conjunction with the Lease, the Company is required to obtain an irrevocable standby letter of credit in the amount of $3.5 million for the benefit of the Landlord. Beginning October 1, 2019 through October 1, 2025, the letter of credit is subject to an annual reduction to as little as $1.2 million.

The foregoing summary of the Lease does not purport to be complete and is qualified in its entirety by reference to the Lease, which will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

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Source: Edgar Glimpses


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