SERVOTRONICS INC /DE/: debt financing — Servotronics enters up to $7M secured credit facility with Rosenthal & Rosenthal, replaces Bank of America debt

SERVOTRONICS INC /DE/

New three-year credit facility of up to $7M; interest rate is greater of prime or 7% plus 1%.
Facility secured by liens on substantially all non-real property assets; borrowing base tied to eligible receivables.
Paid off approximately $3.6M owed to Bank of America, N.A. in full upon closing.
Commitment fee of 0.5% on average daily unused amount; customary facility and administration fees apply.
Financial covenants require minimum tangible net worth and working capital; events of default are standard.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

SERVOTRONICS INC /DE/ incurred credit facility of up to $7,000,000 with Rosenthal & Rosenthal, Inc. at greater of prime or 7% plus 1% maturing three years.

Instrument: credit facility
Principal: up to $7,000,000
Counterparty: Rosenthal & Rosenthal, Inc.
Rate: greater of prime or 7% plus 1%
Maturity: three years
Event: incurrence

Exact text from the filing

& Rosenthal, Inc. (“Rosenthal”) and closed on its new secured credit facility to replace its existing credit facility with Bank of America, N.A. The new credit facility of up to $7,000,000 has a term of three years, subject to acceleration in the event of customary events of default. The Company’s obligations to repay amounts borrowed under the Financing Agreement

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

SERVOTRONICS INC /DE/ entered into Financing Agreement with Rosenthal & Rosenthal, Inc. valued at up to $7,000,000 secured credit facility, three-year term, interest at prime plus 1% with floor of 7 (effective 2023-06-28).

Action: entry
Agreement: credit facility
Counterparty: Rosenthal & Rosenthal, Inc.
Value: up to $7,000,000 secured credit facility, three-year term, interest at prime plus 1% with floor of 7
Effective: 2023-06-28

Exact text from the filing

On June 28, 2023, Servotronics, Inc. (the “Company”) entered into a Financing Agreement (“Financing Agreement”) with Rosenthal & Rosenthal, Inc. (“Rosenthal”) and closed on its new secured credit facility to replace its existing credit facility with Bank of America, N.A. The new credit facility of up to $7,000,000 has a term of three years, subject to acceleration in the event of customary events of default.

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

SERVOTRONICS INC /DE/ terminated previous credit facility with Bank of America, N.A. with Bank of America, N.A. valued at paid in full in aggregate amount of approximately $3,600,000 (effective 2023-06-28).

Action: termination
Agreement: credit facility
Counterparty: Bank of America, N.A.
Value: paid in full in aggregate amount of approximately $3,600,000
Effective: 2023-06-28

Exact text from the filing

All obligations to Bank of America, N.A. under the Company’s previous credit facility were paid in full in the aggregate amount of approximately $3,600,000 upon closing of the Financing Agreement.

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Source: SEC EDGAR

accession 0001104659-23-077047

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