11/13/2024 | Press release | Distributed by Public on 11/13/2024 15:46
Item 1.01 | Entry into a Material Definitive Agreement. |
On November 13, 2024, CPI Aerostructures, Inc. (the "Company") entered into a Fourteenth Amendment (the "Fourteenth Amendment") to that certain Amended and Restated Credit Agreement with the lenders named therein (the "Lenders") and BankUnited, N.A. as Sole Arranger, Administrative Agent and Collateral Agent, dated as of March 24, 2016 (as amended from time to time, the "Credit Agreement").
Under the Fourteenth Amendment, the parties amended the Credit Agreement by: (i) extending the maturity date of the Company's existing revolving line of credit (the "Revolving Credit Loans") to August 31, 2026; (ii) reducing the Base Rate Margin (as defined in the Credit Agreement) from 3.50% to 2.0%; (iii) resetting the aggregate maximum principal amount of all Revolving Credit Loans to $16,890,000 from January 1, 2025 through March 31, 2025, $16,140,000 from April 1, 2025 through June 30, 2025, $15,390,000 from July 1, 2025 through September 30, 2025, $14,640,000 from October 1, 2025 through December 31, 2025, $13,890,000 from January 1, 2026 through March 31, 2026, $13,140,000 from April 1, 2026 through June 30, 2026, and $12,390,000 from July 1, 2026 onward and for payments to be made by the Company to comply therewith (if any such payments are necessary), on the first day of each such period; and (iv) requiring the Company, if it does not deliver to BankUnited, N.A. by December 31, 2025, a commitment letter with banks and terms and conditions reasonably acceptable to the Lenders for refinancing the obligations under the Credit Agreement, to make a payment by January 31, 2026, equal to 2% of the aggregate outstanding principal amount of the Revolving Credit Loans as of December 31, 2025, with 50% of such payment applied to reduce the aggregate outstanding principal and the remaining 50% retained by the Lenders as an amendment fee with respect to the Fourteenth Amendment.
The foregoing description is qualified in its entirety by reference to the Fourteenth Amendment, a copy of which is attached to this Form 8-K as Exhibit 10.1 and incorporated herein by reference.