Key Tronic Corporation
10/10/2024 | Press release | Distributed by Public on 10/10/2024 14:08
Material Agreement Form 8 K
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On October 9, 2024, Key Tronic Corporation (the "Company") and certain of its domestic subsidiaries executed the Sixth Amendment (the "Amendment") to the Loan, Guaranty, and Security Agreement, dated as of August 14, 2020 (as amended from time to time, the "Loan Agreement"), effective as of October 9, 2024, with Bank of America, N.A., as agent, sole lead arranger, sole bookrunner, and lender.
The Amendment waived existing events of default relating to non-compliance with (a) prescribed fixed charge coverage ratios for the periods ending June 29, 2024 and July 27, 2024 and (b) delivering audited financial statements within 90 days of the Company's fiscal year-end. The Amendment increased the interest rate by 50 basis points beginning on October 9, 2024 so that the applicable margin on base rate loans will now be 3.50% and term SOFR loans will now be 4.50%. In addition, the Amendment increased the availability block, which limits available borrowing under the Loan Agreement, from $8 million to $10 million, with further increases to $11 million and $12 million to be effective on December 31, 2024 and March 31, 2025, respectively.
The foregoing description is not complete and is qualified in its entirety by reference to the Amendment, which is filed herewith as Exhibit 10.1 and incorporated herein by reference.