Key Tronic obtains waiver of loan defaults; interest rate up 50bps, availability block raised

KEY TRONIC CORP

Sixth amendment waives defaults for fixed-charge coverage ratio misses in June and July 2024 and late audited financials.
Interest rate margins increased 50 bps: Base Rate loans now 3.50%, Term SOFR loans now 4.50%.
Availability block (borrowing limit) raised from $8M to $10M effective Oct 9, 2024; to rise to $11M on Dec 31, 2024 and $12M on Mar 31, 2025.
Existing defaults triggered by failing to maintain fixed-charge coverage ratio below 1.00:1.00 (June) and 1.05:1.00 (July) plus delayed audited statements.
Amendment effective October 9, 2024; lenders include Bank of America as agent.

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