KEY TRONIC CORPORATI

KTCC
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KEY TRONIC CORP : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (form 8-K)

09/10/2021 | 04:03pm


ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On September 3, 2021, Key Tronic Corporation (the "Company") and certain of its
domestic subsidiaries entered into the Second Amendment (the "Amendment") to the
Loan, Guaranty, and Security Agreement, dated as of August 14, 2020 (the "Loan
Agreement"), with Bank of America, N.A., as agent, sole lead arranger, sole
bookrunner, and lender (the "Bank"). The Amendment increases the Company's
credit facility from $93 million to $120 million, subject to the Company's
borrowing base, and removed the provision permitting the Company to increase the
aggregate amount of the credit facility by up to $25 million. The Amendment also
extends the maturity date to September 3, 2026.
Loans and letters of credit under the Loan Agreement, as amended, are not
permitted to exceed the lesser of (i) the aggregate commitment under the credit
facility and (ii) a borrowing base, which is determined by, among other things,
specified levels of certain eligible accounts receivable and eligible inventory
of the Company and certain of its subsidiaries, subject to certain reserve
requirements, as further described in the Loan Agreement. Based on the Company's
borrowing base and reserve requirements immediately following the closing of the
Amendment, there was approximately $17 million available under the credit
facility.
Except for the changes described above, the terms and the conditions of the Loan
Agreement remain substantially unchanged.
Other than the Loan Agreement, Amendment, credit facility, and related equipment
loan arrangement (and certain related banking relationships and arrangements),
there are no material relationships as of the date hereof between the Company or
any of its affiliates and the Bank.
The foregoing description is not complete and is qualified in its entirety by
reference to the Loan Agreement and the Amendment, which are filed herewith as
Exhibits 10.1 and 10.2 and incorporated herein by reference.


ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN
OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT
The information required by this Item is included in Item 1.01 above and is
incorporated herein by reference.


ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d)Exhibits
Exhibit Number Description
10.1 Loan and Security Agreement, dated August 14 , 2020, among
the Company, Bank of America, N.A, and certain other parties ,
incorporated by reference to Exhibit 10.1 to the Company's Form 8-K
filed August 17, 2020

10.2 Second Amendment to Loan and



Security Agreement, dated September



3 , 2021, among the Company, Bank of America, N.A, and certain
other parties

104 Cover Page Interactive Data File - the cover page XBRL tags are
embedded within the Inline XBRL document



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