---
schema_version: "secwatch.filing_event.v1"
accession: "0001654954-23-008179"
form_type: "8-K"
ticker: "EML"
cik: "0000031107"
company_name: "EASTERN CO"
filed_at: "2023-06-20T23:59:59+00:00"
generated_at: "2026-06-13T21:54:37.753150+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.55
calibrated_materiality_score: 0.55
confidence: "high"
source: SEC EDGAR
---

# Eastern Company enters new $90M credit facility, replacing existing $59M term loan facility

## Summary
- New 5-year senior secured facility: $60M term loan + $30M revolver; accordion up to $75M; matures June 16, 2028.
- Borrowed $60M to retire ~$59M of prior term loan from Santander-led group; prior facility expired Aug 2024.
- Initial interest rate SOFR + 237.5 bps; quarterly principal payments: $750K (Sep '23-Jun '25), increasing thereafter.
- Expects non-cash after-tax charge ~$0.1M ($0.01/share) in Q2 2023; cash interest after-tax increase ~$0.2M ($0.03/share) in FY2023.
- Terminated interest rate swap with Santander, receiving ~$1.6M; new lender group: TD Bank, Wells Fargo, Bank of America, M&T.

## SEC filing metadata
- accession: 0001654954-23-008179
- form_type: 8-K
- ticker: EML
- cik: 0000031107
- company_name: EASTERN CO
- filed_at: 2023-06-20T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.55
- calibrated_materiality_score: 0.55
- confidence: high
- sec_items: 1.01, 1.02, 2.03, 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/31107/000165495423008179/0001654954-23-008179-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/31107/000165495423008179/eml_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001654954-23-008179
- JSON: https://secwatch.observer/filing/0001654954-23-008179.json
- Plain text: https://secwatch.observer/filing/0001654954-23-008179.txt

## Key facts
- Debt Financings
  EASTERN CO incurred credit facility of $90 million five-year senior secured credit facility consisting of a $60 million term loan and a $30 million revolving c with TD Bank, N.A., as Administrative Agent at prime rate or SOFR plus a specified margin; currently 2.375% for SOFR rate loans maturing June 16, 2028.
  - Instrument: credit facility
  - Principal: $90 million five-year senior secured credit facility consisting of a $60 million term loan and a $30 million revolving c
  - Counterparty: TD Bank, N.A., as Administrative Agent
  - Rate: prime rate or SOFR plus a specified margin; currently 2.375% for SOFR rate loans
  - Maturity: June 16, 2028
  - Event: incurrence
  source text: The Credit Agreement provides the Company, as Borrower, with a $90 million five-year senior secured credit facility consisting of a $60 million term loan and a $30 million revolving credit facility.
  evidence_url: https://www.sec.gov/Archives/edgar/data/31107/000165495423008179/0001654954-23-008179-index.htm
- Material Agreements
  EASTERN CO entered into Credit Agreement with lenders signatory thereto, and TD Bank, N.A., as Administrative Agent valued at $90 million (effective 2023-06-16).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: lenders signatory thereto, and TD Bank, N.A., as Administrative Agent
  - Value: $90 million
  - Effective: 2023-06-16
  source text: On June 16, 2023, The Eastern Company (“the Company”) entered into a Credit Agreement (the “Credit Agreement”) and a related Security Agreement (the “Security Agreement”) and related ancillary agreements with certain Lenders signatory thereto, and TD Bank, N.A., as Administrative Agent. The Credit Agreement provides the Company, as Borrower, with a $90 million five-year senior secured credit facility consisting of a $60 million term loan and a $30 million revolving credit facility.
  evidence_url: https://www.sec.gov/Archives/edgar/data/31107/000165495423008179/0001654954-23-008179-index.htm
- Material Agreements
  EASTERN CO terminated Existing Credit Agreement with Santander Bank, N.A., for itself, M&T Bank, National Association, and TD Bank, N.A. as lenders (effective 2023-06-16).
  - Action: termination
  - Agreement: credit facility
  - Counterparty: Santander Bank, N.A., for itself, M&T Bank, National Association, and TD Bank, N.A. as lenders
  - Effective: 2023-06-16
  source text: On June 16, 2023, the Company repaid the approximately $60 million LIBOR note outstanding under its existing August 30, 2019 Credit Agreement with Santander Bank, N.A., for itself, M&T Bank, National Association, and TD Bank, N.A. as lenders (the “Existing Credit Agreement”) and terminated the Existing Credit Agreement and the related Pledge and Security Agreement, dated August 30, 2019 (the “Existing Security Agreement”), with Santander Bank, N.A., as administrative agent.
  evidence_url: https://www.sec.gov/Archives/edgar/data/31107/000165495423008179/0001654954-23-008179-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.