SEVCON, INC. (NASDAQ:SEV) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a RegistrantItem 2.03
On May 22, 2017, Sevcon, Inc. (the “Company”) entered into a loan agreement (the “Loan Agreement”) with FrontFour Capital Group, LLC. The description of the Loan Agreement terms contained in Item 2.03 of the Company’s Form 8-K filed May 24, 2017 is incorporated herein by reference.
On July 3, 2017, the Company borrowed $7,500,000 under the Loan Agreement. The Company will make interest payments on the last day of each month, beginning on July 31, 2017. All principal, together with any accrued and unpaid interest, is due on the earlier of (i)July 3, 2018; (ii) the date, if any, the Lender declares a default; (iii) the date the loans under the Company’s senior credit facility are repaid; or (iv) the date, if any, of a change of control of the Company.
About SEVCON, INC. (NASDAQ:SEV)
Sevcon, Inc. designs and sells motor controllers for zero emission electric and hybrid vehicles (EVs), under the Sevcon name. The Company operates through two segments: electronic controls and capacitors. The electronic controls segment produces microprocessor-based control systems for zero emission and hybrid electric vehicles. The capacitor segment produces metalized film capacitors for sale to electronic equipment manufacturers. Its controls are used to vary the speed and movement of vehicles. The Company’s customers are manufacturers of on and off-road vehicles, including cars, trucks, buses, motorcycles, fork lift trucks, aerial lifts, mining vehicles, airport tractors and other electrically powered vehicles. Its products and accessories for two wheel pure EVs, four wheel pure EVs, hybrid vehicles and industrial electric vehicles include alternating current (AC) controllers, direct current (DC) controllers, battery chargers, DC/DC converters, displays and power steering.