OPTICAL CABLE CORPORATION (NASDAQ:OCC) Files An 8-K Entry into a Material Definitive Agreement
Item1.01 Entry into a Material Definitive Agreement
|
Item9.01 Financial Statements and Exhibits |
|
Exhibits |
Item1.01 Entry into a Definitive
Agreement
On December 21, 2016, Optical Cable Corporation (the Company) and
Bank of North Carolina (the Bank) entered into a Loan
Modification Agreement (the Agreement) to modify the Credit
Agreement dated April 26, 2016 entered into between the Company
and the Bank, the Revolving Credit Note dated April 26, 2016
payable by the Company to the Bank which provides the Company
with a $7,000,000 revolving line of credit (the Revolving Credit
Note), the term loan dated April 26, 2016 payable by the Company
to the Bank in the principal amount of $1,816,609 (Term Loan A)
and the term loan dated April 26, 2016 payable by the Company to
the Bank in the principal amount of $5,271,411 (Term Loan B).
Collectively, we refer to the Credit Agreement, the Revolving
Credit Note, Term Loan A and Term Loan B as the Loan Documents
The purpose of the Agreement was to lower the interest rates of
the Revolving Credit Note, the Term Loan A and Term Loan B which
also resulted in lower monthly installment payments for the
Revolving Credit Note, Term Loan A and Term Loan B. The
applicable margin in the Revolving Credit Note was lowered to
2.50% from 3.65%. The fixed interest rate of the two term loans
was lowered to 3.75% from 4.25%. The Agreement also established a
floor on the interest rate for the Revolving Credit Note such
that the LIBOR Adjusted rate will never be less than 2.5% per
annum.
The Revolving Credit Note, Term Loan A and Term Loan B are
generally secured by the land and buildings at the Companys
headquarters and manufacturing facilities located in Roanoke,
Virginia and its manufacturing and office facilities located near
Asheville, North Carolina and the Companys personal property and
assets.
No other substantive changes were made to the Loan Documents as a
result of the Agreement and the remaining terms of the Loan
Documents remain in full force and effect. The Agreement with
Bank of North Carolina is attached hereto as Exhibit 4.1 and is
incorporated herein by reference.
Item9.01. Financial Statements and Exhibits.
(c) Exhibits
The following is filed as an Exhibit to this Report.
|
ExhibitNo. |
|
Description of Exhibit |
|
4.1 |
|
Loan Modification Agreement dated December 21, 2016 (FILED |
About OPTICAL CABLE CORPORATION (NASDAQ:OCC)