|Delayed - 12/02 04:00:01 pm|
Key Tronic Corporation Enters into Second Amendment to the Loan, Guaranty, and Security Agreement09/10/2021 | 04:01pm
On September 3, 2021, Key Tronic Corporation and certain of its domestic subsidiaries entered into the Second Amendment to the Loan, Guaranty, and Security Agreement, dated as of August 14, 2020, with Bank of America, N.A., as agent, sole lead arranger, sole bookrunner, and lender. 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 the aggregate commitment under the credit facility and 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.
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