Advances under the SVB Revolving Line will accrue interest at a per annum floating rate equal to the greater of 6.25% or the Bank's prime rate plus 3%. Interest is due monthly, and all unpaid principal and accrued but unpaid interest is due upon maturity.
The SVB Agreement contains typical negative covenants for a credit facility of this size and type, including covenants that prevent or restrict our and our subsidiaries' ability to take certain actions, including, without limitation, changing principal executive offices, entering into mergers and acquisitions, disposing of property or other assets, and incurring additional indebtedness. Under the SVB Agreement, we are required to comply with financial covenants to maintain a liquidity ratio of not less than 1.25 to 1.00, and to maintain a minimum EBITDA (maximum loss) for the trailing three month period according to the following schedule: 40 Trailing Three Month Period Minimum EBITDA Ending (maximum loss)
Payment and performance of our obligations with respect to the SVB Revolving Line is secured by a security interest in substantially all of our assets and the assets of the additional Borrowers, including our and their intellectual property.
The SVB Agreement contains typical default provisions for a credit facility of this size and type, that include, among others, defaults in the event of non-payment or non-performance of covenants, a material adverse change, an attachment of our assets or entry of an injunction against doing business, occurrence of certain bankruptcy and insolvency events, cross-defaults to certain other material indebtedness, entry of material judgment and inaccuracy of representations and warranties. The occurrence of an event of default could result in, among other things, acceleration of all obligations under the SVB Revolving Line, Bank ceasing to advance money or extending credit under the SVB Revolving Line, and a right by Bank to exercise all remedies available to it under the SVB Agreement, including the disposition of any or all collateral.