Key Tronic amends credit agreement; loosens covenant but raises cost, shortens maturity

KEY TRONIC CORP

Fixed charge coverage ratio floor reduced to 1.00:1.00 (from 1.25:1) as of March 30, 2024, stepping back to 1.25:1 by March 29, 2025.
Interest rate increased by 100 basis points effective March 29, 2024; maturity accelerated to September 3, 2025 (from original ~4 years later).
Amendment allows add-back of up to $3.7M in one-time expenses incurred in March 2024 to EBITDA; $50,000 amendment fee payable.
Availability block set at $8M; borrowing margins based on average daily availability tiers up to 4.00% over Term SOFR.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

KEY TRONIC CORP amended Fourth Amendment to the Loan, Guaranty, and Security Agreement with Bank of America, N.A. (effective 2024-03-29).

Action: amendment
Agreement: credit facility
Counterparty: Bank of America, N.A.
Effective: 2024-03-29

Exact text from the filing

On May 7, 2024, Key Tronic Corporation (the "Company") and certain of its domestic subsidiaries executed the Fourth Amendment (the “Amendment”) to the Loan, Guaranty, and Security Agreement, dated as of August 14, 2020 (the “Loan Agreement”), effective as of March 29, 2024, with Bank of America, N.A., as agent, sole lead arranger, sole bookrunner, and lender.

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Source: SEC EDGAR

accession 0000719733-24-000017

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