SMTC CORPORATION (NASDAQ:SMTC) Files An 8-K Entry into a Material Definitive Agreement

SMTC CORPORATION (NASDAQ:SMTC) Files An 8-K Entry into a Material Definitive Agreement

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Item 1.01 Entry into a Material Definitive Agreement.

On November 22, 2016, SMTC Corporation (the Company), SMTC
Manufacturing Corporation of California, SMTC Mex Holdings, Inc.,
ZF Array Technology, Incorporated, and HTM Holdings, Inc., as US
Borrowers, SMTC Manufacturing Corporation of Canada, as Canadian
Borrower, the financial institutions which are now or which
hereafter become a party to the Loan Agreement and PNC Bank,
National Association, as agent for the lenders entered into the
Eleventh Amendment (the Eleventh Amendment) to the Revolving
Credit and Security Agreement, dated September 14, 2011 (as
subsequently amended, the Loan Agreement).

The Eleventh Amendment is expected to improve the Companys
liquidity by providing that the lenders shall make a term loan to
the US Borrowers in aggregate principal amount of $10,000,000 on
the date that the parties entered into the Eleventh Amendment
(the Term Loan), which aggregate amount of the Term Loan includes
the $4,250,000 of the term loan previously outstanding on that
date. The Term Loan has quarterly principal amortization of
$500,000, which commences on January 1, 2017. In connection, the
Eleventh Amendment reduces the maximum available amount of the
revolving credit facility provided under the Loan Agreement by
$5,000,000 to $30,000,000, availability of which is subject to
certain conditions, including borrowing base conditions based on
eligible inventory and accounts receivable and reserve
requirements as determined by the agent. The Eleventh Amendment
sets the applicable interest rate margins (which margins are
added to an interest rate based upon LIBOR or the U.S. base rate,
as applicable, to determine the applicable interest rate) for
loans under the revolving credit facility bearing interest based
on LIBOR at 3.00% and for loans under the revolving credit
facility bearing interest based on the U.S. base rate at 0.25%.
The applicable interest rate margins for the Term Loan are 3.50%
for amounts bearing interest based on LIBOR and 0.75% for amounts
bearing interest based on the U.S. base rate. The Eleventh
Amendment extends the term of the Loan Agreement until January 2,
2021, unless sooner terminated in accordance with the terms of
the Loan Agreement.

The foregoing description of the Eleventh Amendment is qualified
in its entirety by reference to the full text of the Eleventh
Amendment, which is filed as Exhibit 10.1 to this Current Report
on Form 8-K and is incorporated by reference herein.

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

(a) The disclosure provided under Item 1.01 of this Current
Report on Form 8-K is incorporated by reference into this Item
2.03(a) as if fully set forth herein.

Item 9.01Financial Statements and Exhibits.

(d)Exhibits

Exhibit Number Description
10.1 Eleventh Amendment, dated as of November 22, 2016, to
Revolving Credit and Security Agreement.
10.2 Executed and Amended Term Note, dated as of November 22,
2016.


About SMTC CORPORATION (NASDAQ:SMTC)

Semtech Corporation is a supplier of analog and mixed-signal semiconductor products. The Company’s product lines include Signal Integrity, Protection, Wireless and Sensing, and Power and High-Reliability. It designs, develops and markets a portfolio of optical communications, broadcast video, surveillance video, active cable transceiver and backplane products used in enterprise computing, industrial, communications and consumer applications. It designs, develops and markets protection devices, which are referred to as transient voltage suppressors (TVS). Its protection products are found in applications, including smart phones and tablets. It designs, develops and markets a portfolio of radio frequency products used in a range of industrial, medical and communications applications, and sensing products used in industrial and consumer applications. It designs, develops and markets power product devices that control, alter, regulate and condition the power within electronic systems.

SMTC CORPORATION (NASDAQ:SMTC) Recent Trading Information

SMTC CORPORATION (NASDAQ:SMTC) closed its last trading session up +0.90 at 28.35 with 334,536 shares trading hands.

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