ASTRONICS CORPORATION (NASDAQ:ATRO) Files An 8-K Entry into a Material Definitive AgreementItem 2.03Entry into a Material Definitive Agreement.
The disclosure set forth in Item 2.03 below is incorporated in this Item 2.03 by reference
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
Astronics Corporation (the “Company”) modified and extended its existing credit facility (the “Original Facility”) by entering into the Fifth Amended and Restated Credit Agreement (the “Agreement”) as of February 16, 2018, with HSBC Bank USA, National Association (“HSBC”), as Agent, and HSBC Bank USA, National Association, Bank of America, N.A., SunTrust Bank, Wells Fargo Bank, National Association, and Manufacturers and Traders Trust Company, as lenders (the “Lenders”). On the closing date, there were $262 million of revolving loans outstanding and letters of credit with a face amount of $1.1 million outstanding under the Original Facility. to the Agreement, the Original Facility was replaced with a $500 million revolving credit line with the option to increase the line by up to $150 million. The outstanding balances in the Original Facility were rolled into the Agreement on the date of closing.In addition, the maturity date of the loans under the Agreement is now February 16, 2023.
Covenants in the Agreement have been modified to where the maximum permitted leverage ratio is 3.75 to 1. However, the Company may elect to exercise its right to increase this ratio to 4.50 to 1 for up to four fiscal quarters following the closing of an acquisition permitted under the Agreement subject to limitations. The Company will pay interest on the unpaid principal amount of the facility at a rate equal to one, three or six month Libor plus between 100 basis points and 150 basis points based upon the Company’s leverage ratio.The Company will also pay a commitment fee to the Lenders in an amount equal to between 10 basis points and 20 basis points on the undrawn portion of the credit facility, based upon the Company’s leverage ratio. As under the Original Facility, the Company’s obligations under the Agreement are required to be jointly and severally guaranteed by each domestic subsidiary of the Company other than a non-material subsidiary. The obligations are secured by a first priority lien on substantially all of the Company’s and the guarantors’ assets.
The above description does not purport to be complete and is qualified in its entirety by reference to the Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K.
ASTRONICS CORP ExhibitEX-10.1 2 a21618exhibit101.htm EXHIBIT 10.1 Exhibit Exhibit 10.1FIFTHAMENDED AND RESTATEDCREDIT AGREEMENT- Among -ASTRONICS CORPORATIONas Borrower- And -The Lenders Party Hereto- And -HSBC BANK USA,…To view the full exhibit click
About ASTRONICS CORPORATION (NASDAQ:ATRO)
Astronics Corporation is a supplier of products to the aerospace, defense, electronics and semiconductor industries. The Company’s products and services include electrical power generation, distribution and motion systems, lighting and safety systems, avionics products, aircraft structures, systems certification and automated test systems. The Company operates through two segments: Aerospace and Test Systems. The Company’s Aerospace segment designs and manufactures products for the global aerospace industry. Its product lines include lighting and safety systems, electrical power generation, distribution and motions systems, aircraft structures, avionics products, systems certification and other products. The Company’s Test Systems segment designs, develops, manufactures and maintains automated test systems that support the semiconductor, aerospace, communications and weapons test systems, as well as training and simulation devices for both commercial and military applications.