Kana Software today filed news of an amendment to its loan agreement with Bridge Bank to “require” the Menlo Park maker of customer service tools to borrow $1 million from Agility Capital, which Kana did as of July 30.
The loan bears an interest rate of 15 percent and becomes due June 30, 2010. Until then Kana is required to make payments of $90,000, plus accrued interest, on the first of each month beginning in September.
Once the loan becomes due, or once Kana pays it off, whichever comes first, the company will then have to pay Agility a $350,000 “fee” on top of everything else. Even without the 15 percent interest, that’s a very handsome — some might say usurious — rate of return.
The loan is secured by all of Kana’s assets, although Agility would behind Bridge Bank in a line of creditors should Kana go belly up.
Kana is in the midst of dealing with an effort by a major investor that wants the company to “consider significant changes in business strategy and corporate governance,” including selling the company and cutting expenses “immediately.”