Novanta Inc. (NASDAQ:NOVT) Files An 8-K Entry into a Material Definitive Agreement

Novanta Inc. (NASDAQ:NOVT) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement

On August 1, 2017, Novanta Inc. (the “Company”) and the Company’s wholly owned subsidiaries, Novanta Corporation ( “Novanta”), Novanta UK Investments Holding Limited (“Novanta U.K.”), and Novanta Europe GmbH (“Novanta GmbH” and, together with Novanta and Novanta U.K., “the Borrowers”), each of the Company’s other subsidiaries party thereto as guarantors (the “Guarantors”), each lender party thereto, and Bank of America, N.A., as Administrative Agent, entered into an amendment (the “Third Amendment”) to the Second Amended and Restated Credit Agreement, dated as of May 19, 2016, by and among the Company, the Borrowers, Bank of America, N.A., as administrative agent, swing line lender, letter of credit issuer and lender, Merrill Lynch, Pierce, Fenner & Smith Incorporated, as joint lead arranger, JP Morgan Chase Bank, N.A., as joint lead arranger, co-syndication agent and lender, Wells Fargo Securities LLC, as joint lead arranger, Wells Fargo Bank, National Association, as co-syndication agent and lender, Silicon Valley Bank, as co-documentation agent and lender, TD Bank, N.A., as co-documentation agent and lender, Bank of Montreal, as co-documentation agent and lender, and HSBC Bank USA, N.A, as a lender (as amended prior to the Third Amendment, the “Second Amended and Restated Credit Agreement”).

The Third Amendment increased the revolving credit facility commitment under the Second Amended and Restated Credit Agreement by $100 million, from $225 million to $325 million, and reset the uncommitted accordion feature to $125 million for potential future expansion. Additionally, the Third Amendment increased the term loan balance by $25 million, from $65.6 million to $90.6 million.

Under the Third Amendment, the Company is required to pay quarterly scheduled principal repayments of $2.3 million beginning in October 2017, with the final installment of $56.1 million due in May 2021, if the maturity date of the term loan facility is not otherwise extended.Subject to certain exceptions, the Company is required to prepay outstanding loans under the Second Amended and Restated Credit Agreement with the net proceeds of certain asset dispositions and incurrences of certain debt.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

The information set forth in Item 1.01 in connection with the Third Amendment is incorporated in this Item 2.03 by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits:

NOVANTA INC ExhibitEX-10.1 2 novt-ex101_6.htm EX-10.1 novt-ex101_6.htm Exhibit 10.1 THIRD AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT This THIRD AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of August 1,…To view the full exhibit click here
About Novanta Inc. (NASDAQ:NOVT)
Novanta Inc., formerly GSI Group Inc., designs, develops, manufactures and sells photonic and motion control components and subsystems. The Company offers its products to original equipment manufacturers in the medical equipment and industrial technology markets. Its segments include Laser Products, Vision Technologies and Precision Motion. The Laser Products segment designs, manufactures and markets photonics-based solutions, including carbon dioxide laser sources, laser scanning and laser beam delivery products. The Vision Technologies segment designs, manufactures and markets a range of medical grade technologies, including visualization solutions, imaging informatics products, radio frequency identification technologies, thermal printers, and light and color measurement instrumentation. The Precision Motion segment designs, manufactures and markets optical encoders, precision motors and other motion control technology, air bearing spindles and precision machined components.