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

SMTC CORPORATION (NASDAQ:SMTX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01

Entry into a Material Definitive Agreement.
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First Amendment to Amended and Restated Revolving Credit and Security Agreement

On March 29, 2019, SMTC Corporation, a Delaware corporation (the “Company”) entered into that certain First Amendment to Amended and Restated Revolving Credit and Security Agreement (“PNC Amendment”), by and among the Company, SMTC Manufacturing Corporation of California, a California corporation (“SMTC California”), SMTC Mex Holdings, Inc., a Delaware corporation (“SMTC Mex”), HTM Holdings, Inc. a Delaware corporation (“HTM”), MC Test Service, Inc., a Florida corporation (“MC Test”), MC Assembly International LLC, a Delaware limited liability company (“MC Assembly International”), MC Assembly LLC, a Delaware limited liability company (“MC Assembly” and together with the Company, SMTC California, SMTC Mex, HTM, MC Test, and MC Assembly International, and each other person joined thereto as a borrower from time to time, the “Borrowers”), the financial institutions party to that certain Amended and Restated Revolving Credit and Security Agreement, dated as of November 8, 2018 (as disclosed on the Company’s Current Report on Form 8-K filed with the Commission on November 9, 2018) (such agreement, the “PNC Agreement” and, such lenders thereto, the “PNC Lenders”), and PNC Bank, National Association (“PNC”), as agent for the PNC Lenders. The PNC Amendment, among other things, amends the required senior leverage ratio initially set forth in the PNC Agreement by deleting the reference to “3.50x” therein and substituting “3.75x” therefor. The foregoing description of the PNC Amendment is not complete and is subject to and entirely qualified by reference to the full text of the PNC Amendment, which is attached hereto as Exhibit 10.1.

Amendment No. 1 and Waiver to Financing Agreement

On March 29, 2019, the Company entered into that certain Amendment No. 1 and Waiver to Financing Agreement (the “TCW Amendment”), by and among the Company, each person that is a borrower under that certain Financing Agreement, dated as of November 8, 2018 (as disclosed on the Company’s Current Report on Form 8-K filed with the Commission on November 9, 2018) (the “TCW Agreement”), each other loan party that is a party to the TCW Agreement, each financial institution that is a party to the TCW Agreement (collectively, the “TCW Lenders”), TCW Asset Management Company LLC, as administrative agent for the TCW Lenders, and TCW Asset Management Company LLC, as collateral agent for the TCW Lenders. The TCW Amendment, among other things, (i) requires that the loan parties deliver a Key Performance Indicators (KPI) report to TCW Lenders and the administrative agent, and (ii) amends the required senior leverage ratio initially set forth in the TCW Agreement by deleting the reference to “3.50x” therein and substituting “3.75x” therefor. The foregoing description of the TCW Amendment is not complete and is subject to and entirely qualified by reference to the full text of the TCW Amendment, which is attached hereto as Exhibit 10.2.

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

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 9.01 Financial Statements and Exhibits.

(d)Exhibits

SMTC CORP Exhibit
EX-10.1 2 exh_101.htm EXHIBIT 10.1 Exhibit 10.1     FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT   This First Amendment to Amended and Restated Revolving Credit and Security Agreement (the “Amendment”) is made as of this 29th day of March,…
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About SMTC CORPORATION (NASDAQ:SMTX)

SMTC Corporation (SMTC) is a provider of electronics manufacturing services (EMS). The Company’s manufacturing services include product design and sustaining engineering services, printed circuit board assembly (PCBA), production, enclosure fabrication, systems integration and testing services, configuration to order, build to order and direct order fulfillment. Its geographic segments include the United States, Mexico and China. SMTC offers integrated contract manufacturing services to global original equipment manufacturers and technology companies primarily within the industrial, networking and computing, communications and medical market sectors. SMTC offers over three vertically integrated manufacturing streams, such as enclosures and precision metal fabrication products, PCBA products and larger-scale systems. For each of these streams, SMTC provides a range of manufacturing services, from assembly, test to system level test and end customer order fulfillment.

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