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ODYSSEY MARINE EXPLORATION 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

August 18, 2014



Item 1.01. Entry Into a Material Definitive Agreement.

The disclosure set forth below under Item 2.03 (Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant) is hereby incorporated by reference into this Item 1.01.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an

Off-Balance Sheet Arrangement of a Registrant.

On August 14, 2014, Odyssey Marine Exploration, Inc. ("Odyssey") entered into a loan agreement with a strategic marketing partner that provides for loans of up to an aggregate amount of $10.0 million. At closing, Odyssey borrowed $5.0 million, and Odyssey has the right to borrow the remainder in two tranches of $2.5 million each upon the achievement of milestones set forth in the loan agreement. Advances under the loan agreement bear interest at a rate of 8.0% for the first year and 11.0% thereafter. The credit facility provides for monthly payments of interest only, with the principal amount and all accrued interest due and payable on August 14, 2016. As further consideration for the credit facility, Odyssey assigned to the lender a portion of the shares that Odyssey owns in an Odyssey subsidiary and granted the lender the right to convert the outstanding loan balance into shares of that subsidiary or to purchase additional shares of that subsidiary from Odyssey if the loan is repaid. Odyssey's obligations under the credit facility are secured by specified assets, including a portion of Odyssey's shares in the subsidiary. Odyssey's obligation to repay the principal and accrued interest may be accelerated at the option of the lender if an event of default, as specified in the loan agreement, occurs. Odyssey may prepay the outstanding loan balance before the maturity date.

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Source: Edgar Glimpses


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