--- schema_version: "secwatch.filing_event.v1" accession: "0000090168-23-000072" form_type: "8-K" ticker: "SIF" cik: "0000090168" company_name: "SIFCO INDUSTRIES INC" filed_at: "2023-12-28T23:59:59+00:00" generated_at: "2026-06-07T06:42:03.299812+00:00" event_type: "debt" sentiment: "negative" materiality_score: 0.9 calibrated_materiality_score: 0.9 confidence: "high" source: SEC EDGAR --- # SIFCO secures $3M director sub loan; JPMorgan credit amended: maturity Oct 2024, revolver cut to $19M, sale process ## Summary - Subordinated loan of $3M from Garnet Holdings (owned by director Mark Silk) at 14% PIK interest, matures Oct 4, 2024. - JPMorgan Ninth Amendment reduces revolving commitment from $23M to $19M and extends maturity to Oct 4, 2024. - Borrowing base reserves increase from $1.5M by $250K/month starting May 2024, reaching $2.5M by August 2024. - Company must engage Houlihan Lokey to pursue sale of the company on a best-efforts basis by May 31, 2024. - Director Mark Silk provides guaranty to JPMorgan; receives $760K guaranty fee (added to principal, payable at maturity). ## SEC filing metadata - accession: 0000090168-23-000072 - form_type: 8-K - ticker: SIF - cik: 0000090168 - company_name: SIFCO INDUSTRIES INC - filed_at: 2023-12-28T23:59:59+00:00 - event_type: debt - sentiment: negative - materiality_score: 0.9 - calibrated_materiality_score: 0.9 - confidence: high - sec_items: 1.01, 2.03, 9.01 - EDGAR index: https://www.sec.gov/Archives/edgar/data/90168/000009016823000072/0000090168-23-000072-index.htm - EDGAR primary document: https://www.sec.gov/Archives/edgar/data/90168/000009016823000072/sif-20231221.htm ## Machine-readable alternates - HTML: https://secwatch.observer/filing/0000090168-23-000072 - JSON: https://secwatch.observer/filing/0000090168-23-000072.json - Plain text: https://secwatch.observer/filing/0000090168-23-000072.txt ## Key facts - Debt Financings SIFCO INDUSTRIES INC amended credit facility with JPMorgan Chase Bank, N.A. at 2.75% (CBFR REVSOFR30), 0.25% (CBFR Spread (CB Floating Rate)), 2.75% (SOFR Spre maturing October 4, 2024. - Instrument: credit facility - Counterparty: JPMorgan Chase Bank, N.A. - Rate: 2.75% (CBFR REVSOFR30), 0.25% (CBFR Spread (CB Floating Rate)), 2.75% (SOFR Spre - Maturity: October 4, 2024 - Event: amendment source text: The Ninth Amendment amends the Credit Agreement to, among other things, to: (i) reflect the incurrence by borrowers of the Subordinated Loan evidence_url: https://www.sec.gov/Archives/edgar/data/90168/000009016823000072/0000090168-23-000072-index.htm - Debt Financings SIFCO INDUSTRIES INC incurred loan of $3,000,000 with Garnet Holdings, Inc. at 14% per annum maturing October 4, 2024. - Instrument: loan - Principal: $3,000,000 - Counterparty: Garnet Holdings, Inc. - Rate: 14% per annum - Maturity: October 4, 2024 - Event: incurrence source text: On December 21, 2023, SIFCO Industries, Inc. (the “Company”) and certain of its subsidiaries (collectively, the “borrowers”), in connection with and as a condition to the agreement by JPMorgan Chase Bank, N.A. (the “Lender”) to consummate the transactions contemplated by the Ninth Amendment and the Fourth Amendment (each as defined below), incurred a secured subordinated loan from Garnet Holdings, Inc., a California corporation owned and controlled by Mark J. Silk (“GHI”), in the original principal amount of $3,000,000 (the “Subordinated Loan”) evidence_url: https://www.sec.gov/Archives/edgar/data/90168/000009016823000072/0000090168-23-000072-index.htm - Material Agreements SIFCO INDUSTRIES INC entered into Fourth Amendment with JPMorgan Chase Bank, N.A. (effective 2023-12-21). - Action: entry - Agreement: credit facility - Counterparty: JPMorgan Chase Bank, N.A. - Effective: 2023-12-21 source text: Fourth Amendment (the “Fourth Amendment”) to Export Credit Agreement (the “Export Credit Agreement”), in each case, with the Lender. evidence_url: https://www.sec.gov/Archives/edgar/data/90168/000009016823000072/0000090168-23-000072-index.htm - Material Agreements SIFCO INDUSTRIES INC entered into Ninth Amendment with JPMorgan Chase Bank, N.A. (effective 2023-12-21). - Action: entry - Agreement: credit facility - Counterparty: JPMorgan Chase Bank, N.A. - Effective: 2023-12-21 source text: On December 21, 2023, the borrowers entered into the Ninth Amendment (the “Ninth Amendment”) to the Credit Agreement (as previously amended, the “Credit Agreement”) evidence_url: https://www.sec.gov/Archives/edgar/data/90168/000009016823000072/0000090168-23-000072-index.htm - Material Agreements SIFCO INDUSTRIES INC entered into Subordinated Secured Promissory Note with Garnet Holdings, Inc. valued at $3,000,000 (effective 2023-12-21). - Action: entry - Agreement: credit facility - Counterparty: Garnet Holdings, Inc. - Value: $3,000,000 - Effective: 2023-12-21 source text: incurred a secured subordinated loan from Garnet Holdings, Inc., a California corporation owned and controlled by Mark J. Silk (“GHI”), in the original principal amount of $3,000,000 (the “Subordinated Loan”), on the terms and subject to the conditions of: (a) a Subordinated Secured Promissory Note (the “Subordinated Promissory Note”) evidence_url: https://www.sec.gov/Archives/edgar/data/90168/000009016823000072/0000090168-23-000072-index.htm - Material Agreements SIFCO INDUSTRIES INC entered into Subordination and Intercreditor Agreement with Garnet Holdings, Inc. (effective 2023-12-21). - Action: entry - Counterparty: Garnet Holdings, Inc. - Effective: 2023-12-21 source text: (the “Lender”) to consummate the transactions contemplated by the Ninth Amendment and the Fourth Amendment (each as defined below), incurred a secured subordinated loan from Garnet Holdings, Inc., a California corporation owned and controlled by Mark J. Silk (“GHI”), in the original principal amount of $3,000,000 (the “Subordinated Loan”), on the terms and subject to the conditions of: (a) a Subordinated Secured Promissory Note (the “Subordinated Promissory Note”) in the original principal amount of $3,000,000 issued by borrowers to GHI, (b) a Subordination and Intercreditor Agreement (the “Subordination Agreement”) by and among borrowers, GHI and Lender, and (c) a Side Letter by and among borrowers and Mark J. evidence_url: https://www.sec.gov/Archives/edgar/data/90168/000009016823000072/0000090168-23-000072-index.htm This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.