SIFCO Industries, Inc. (NYSEMKT:SIF) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
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Entry into a Material Definitive Agreement.
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Company) entered into an Amended and Restated Credit and Security
Agreement (the Credit Agreement) with KeyBank National Association,
as Lead Arranger, Sole Book Runner, Administrative Agent, Swing
Line Lender and Issuing Lender (KeyBank), and the lenders from time
to time party thereto.
senior secured loans in an aggregate principal amount of up to
$39,871,000 (the Credit Facility). The Credit Facility is composed
of (i) a senior secured revolving credit facility of a maximum of
$35,000,000 (the Revolving Credit Facility), including swing line
loans made available by KeyBank as the swing line lender and
letters of credit and (ii) a senior secured term loan facility of
up to $4,871,000 (the Term Loan Facility). Amounts borrowed under
the Credit Facility will be used to repay amounts outstanding under
the Companys prior credit facility with KeyBank, for working
capital, for general corporate purposes and to pay fees and
expenses associated with this transaction.
substantially all the assets of the Company and its U.S.
subsidiaries and a pledge of 65% of the stock of its first-tier
non-U.S. subsidiaries. Borrowings will bear interest at the LIBOR
rate or prime rate, depending on the type of loan requested by the
Company, in each case plus the applicable margin as set forth in
the Credit Agreement.
customary for a transaction of this type which, among other things,
require the Company to maintain a minimum consolidated adjusted
EBITDA and maintain a minimum fixed charge coverage ratio. The
Credit Agreement also contains covenants which, among other things,
limit the Company’s ability to: incur unfunded capital
expenditures; incur additional debt; make certain investments;
create or permit certain liens; merge, consolidate or sell assets
outside of the ordinary course of business; and engage in other
activities customarily restricted in such agreements, in each case
subject to exceptions permitted by the Credit Agreement. The Credit
Agreement also contains customary representations and warranties
and default provisions (with customary grace periods, as
applicable) and provides that, upon the occurrence and continuation
of an event of default, payment of all amounts payable under the
Credit Facility may be accelerated and/or the lenders commitments
may be terminated. In addition, upon the occurrence of certain
insolvency or bankruptcy related events of default, such
commitments will automatically terminate and all amounts
outstanding under the Credit Facility will automatically become
immediately due and payable.
to be complete and is qualified in its entirety by reference to the
full text of the Credit Agreement attached to this Form 8-K as
Exhibit 10.1 and incorporated herein by reference.
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Item 2.03
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Creation of a Direct Financial Obligation or an
Obligation under an OffBalance Sheet Arrangement of the Registrant. |
incorporated herein by reference.
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Item 9.01
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Financial Statements and Exhibits.
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of November 9, 2016, by and among SIFCO Industries, Inc., the
Lenders named therein and KeyBank National Association, as Lead
Arranger, Sole Book Runner, Administrative Agent, Swing Line
Lender and Issuing Lender
About SIFCO Industries, Inc. (NYSEMKT:SIF)
SIFCO Industries, Inc. is engaged in the production of forgings and machined components for the aerospace and energy markets. The Company’s processes and services include forging, heat-treating and machining. The Company services both original equipment manufacturers (OEM) and aftermarket customers with products that range in size from approximately 2 to 1,200 pounds. The Company’s products are made primarily of steel, stainless steel, titanium and aluminum, and include OEM and aftermarket components for aircraft and industrial gas turbine engines; steam turbine blades; structural airframe components; aircraft landing gear components; aircraft wheels and brakes; critical rotating components for helicopters, and commercial/industrial products. It also provides heat-treatment, surface-treatment, non-destructive testing and select machining of forged components. It supplies new and spare components to the United States military for aircraft, helicopters, vehicles and ammunition. SIFCO Industries, Inc. (NYSEMKT:SIF) Recent Trading Information
SIFCO Industries, Inc. (NYSEMKT:SIF) closed its last trading session up +0.03 at 9.93 with 26,976 shares trading hands.
