MTS SYSTEMS CORPORATION (NASDAQ:MTSC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
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Entry into a Material Definitive Agreement
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due to an internal investigation of apparent violations by
certain employees in its China operations of the Companys code of
conduct, the filing of the Companys Annual Report on Form 10-K
for its fiscal year ended October 1, 2016 (Fiscal 2016) was
delayed beyond the extended filing due date. As a result of the
delayed filing, on January 24, 2017, the Company received a
consent and waiver (the Consent) from each of the lenders under
its credit agreement, dated as of July 5, 2016, by and among the
Company, the Companys foreign subsidiaries from time to time
party thereto, the lenders from time to time party thereto, U.S.
Bank National Association and HSBC Bank USA, National Association
as co-documentation agents, Wells Fargo Bank, National
Association as syndication agent, JPMorgan Chase Bank, N.A.
(JPMorgan) as administrative agent (the Administrative Agent) and
JPMorgan and Wells Fargo Securities, LLC as joint bookrunners and
joint lead arrangers (as amended from time to time, the Credit
Agreement). The Consent waives any defaults resulting from the
Companys failure to timely provide its audited financial
statements (the Annual Financial Statements) for Fiscal 2016 on
or before the deadline set forth in the Credit Agreement so long
as such Annual Financial Statements are furnished to the
Administrative Agent and the lenders no later than April 24, 2017
(the Extension Date). The Consent also extends the deadline to
deliver the Companys unaudited financial statements for the first
quarter of the 2017 fiscal year until the Extension Date (the
Quarterly Financial Statements and together with the Annual
Financial Statements, the Financial Statements). In connection
with obtaining the Consent, the Company paid certain fees to
JPMorgan and the lenders.
Administrative Agent and the lenders on or before the Extension
Date. The Company also plans to file its Annual Report on Form
10-K for Fiscal 2016 and its Quarterly Report on Form 10-Q for
the first quarter of the 2017 fiscal year no later than the
Extension Date.
in its entirety by, the full text of the Consent, which is
attached to this Current Report on Form 8-K as Exhibit 10.1, and
is incorporated herein by reference.
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Item 9.01
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Financial Statements and Exhibits
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(d)
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Exhibits
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10.1
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Form of Consent Memorandum, effective as of January 24,
2017, executed by the lenders party thereto and JPMorgan Chase Bank, N.A. as administrative agent, and acknowledged and agreed to by MTS Systems Corporation. |
About MTS SYSTEMS CORPORATION (NASDAQ:MTSC)
MTS Systems Corporation (MTS) is a global supplier of test systems and position sensors. The Company’s operations are organized and managed in two business segments: the Test segment and the Sensors. Testing segment’s testing hardware, software and services solutions help customers improve their design, development, and manufacturing processes and are used for determining the mechanical behavior of materials, products, and structures. Test also sells a range of accessories and spare parts, as well as services, including installation, calibration, maintenance, training and consulting. MTS’ sensors segment provides controls for a range of industrial and vehicular applications. The segment’s customer industries include manufacturers of plastic injection molding machines, steel mills, fluid power, oil and gas, medical, wood product processing equipment, mobile equipment, and energy. MTS SYSTEMS CORPORATION (NASDAQ:MTSC) Recent Trading Information
MTS SYSTEMS CORPORATION (NASDAQ:MTSC) closed its last trading session down -0.05 at 58.35 with 68,939 shares trading hands.
