Hurco Companies, Inc. (NASDAQ:HURC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
| Entry into a Material Definitive Agreement. |
As of December 6, 2016: (1) Hurco Companies, Inc. (the
Company) and JPMorgan Chase Bank, N.A. (Chase), as
Administrative Agent, Issuing Bank and the Lender, entered into a
Fourth Amendment to Credit Agreement, and the Company entered
into a related Replacement Revolving Note; and (2) certain
wholly-owned subsidiaries of the Company entered into a
Reaffirmation of Guaranty and a Supplement No. 1 to Subsidiary
Guaranty (collectively, the transactions contemplated by the
foregoing, the Fourth Amendment). The Fourth Amendment
amends the Credit Agreement, dated as of December 7, 2012, among
the Company, the Lenders party thereto and Chase, as
Administrative Agent (as amended, restated and otherwise modified
from time to time, the U.S. Credit Agreement), the
Subsidiary Guaranty dated December 7, 2012 entered into
thereunder (as amended, restated or otherwise modified from time
to time, the Subsidiary Guaranty), and other documents
and/or transactions contemplated thereby, as follows:
|
increased the unsecured revolving credit facility from $12.5 million to $15.0 million; |
|
increased the maximum limitation on the amount of cash dividends that may be paid by the Company in any calendar year from $4.0 million to $5.0 million (with payment permitted so long as no default or event of default shall have occurred and be continuing or would result therefrom); |
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extended the scheduled maturity date under the U.S. Credit Agreement from December 7, 2016 to December 31, 2018; |
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increased the Companys financial covenant regarding required minimum working capital from $90.0 million to $105.0 million; |
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increased the Companys financial covenant regarding required minimum tangible net worth from $120.0 million to $125.0 million; |
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provided that the minimum interest rate permitted for borrowings under the U.S. Credit Agreement is zero percent (0%); and |
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required Milltronics USA, Inc., a wholly-owned subsidiary of the Company (Milltronics), to agree to be bound by the terms of the Subsidiary Guaranty, to which Milltronics guarantees the obligations of the Company under the Credit Agreement and transactions contemplated thereunder. |
The foregoing summary of the Fourth Amendment is qualified in its
entirety by reference to the complete terms and provisions of the
Fourth Amendment to Credit Agreement and the Replacement
Revolving Note that are filed herewith as Exhibits 10.1 and 10.2,
respectively, and are incorporated herein by reference.
| Item 2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The disclosure required by this Item is included in Item 1.01 and
is incorporated herein by reference.
|
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| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits |
| Exhibit No. | Description | |
| 10.1 |
Fourth Amendment to Credit Agreement, dated as of December |
|
| 10.2 |
Replacement Revolving Note, dated as of December 6, 2016 by Hurco Companies, Inc. for the benefit of JPMorgan Chase Bank, N.A. |
|
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About Hurco Companies, Inc. (NASDAQ:HURC)
Hurco Companies, Inc. is an industrial technology company. The Company designs, manufactures and sells computerized (Computer Numeric Control (CNC)) machine tools, consisting primarily of vertical machining centers (mills) and turning centers (lathes). It operates in the industrial automation equipment segment. It designs and produces interactive computer control systems and software, computerized machine tools, and machine tool components and accessories for sale through its own distribution network to the metal working market. Its product lines include Hurco Brand of CNC Machine Tools, Milltronics Brand of CNC Machine Tools, Takumi Brand of CNC Machine Tools, Hurco Computer Control Systems and Software and LCM Machine Tool Components and Accessories. It has three brands of CNC machine tools in its product portfolio: Hurco, Milltronics and Takumi. In addition, through LCM Precision Technology S.r.l. (LCM), the Company produces machine tool components and accessories. Hurco Companies, Inc. (NASDAQ:HURC) Recent Trading Information
Hurco Companies, Inc. (NASDAQ:HURC) closed its last trading session up +0.60 at 33.75 with 17,445 shares trading hands.
