secwatch.observer — SEC 8-K summary
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Issuer:     EASTERN CO (EML)
CIK:        0000031107
Form:       8-K
Filed at:   2023-06-20T23:59:59+00:00
Accession:  0001654954-23-008179
Event type: debt
Sentiment:  neutral
Materiality: 0.55
Item codes: 1.01, 1.02, 2.03, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/31107/000165495423008179/0001654954-23-008179-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/31107/000165495423008179/eml_8k.htm
  HTML page:      https://secwatch.observer/filing/0001654954-23-008179

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