Transcat, Inc (NASDAQ:TRNS) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
On October 30, 2017, Transcat, Inc. (the “Company”) entered into the Amended and Restated Credit Facility Agreement (the “Restated Agreement”) with Manufacturers and Traders Trust Company (the “Bank”), that amends and restates in its entirety the Company’s existing Credit Facility Agreement dated as of September 20, 2012, as amended by Amendment 1 dated as of August 26, 2014, Amendment 2 dated as of December 30, 2015 and Amendment 3 dated as of March 31, 2016. The Restated Agreement extends the term of the Company’s $30.0 million revolving credit facility with the Bank until October 29, 2021. The Restated Agreement also increases the amount of the Company’s outstanding term loan with the Bank from $10.0 million to $15.0 million and extends the term loan maturity date to October 29, 2022. The Restated Agreement now requires principal repayments of approximately $0.2 million per month plus interest with respect to the term loan until maturity when the entire remaining principal amount and accrued and unpaid interest will be due. No financial covenants were changed in the Restated Agreement.
In addition, the Restated Agreement modifies the Applicable Rate used to determine interest charges on outstanding borrowings under the revolving credit facility and the term loan, and unused commitment fees, with such changes resulting in a lower Applicable Rate, and amends the definition of Permitted Acquisition to increase borrowings available under the Revolving Credit Facility for Acquisitions in any Fiscal Year from $15 million to $20 million. Terms used herein and otherwise not defined have the meanings given them in the Restated Agreement.
The foregoing summary of the Restated Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Restated Agreement intended to be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 23, 2017.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth under Item 1.01 is incorporated herein by reference.
About Transcat, Inc (NASDAQ:TRNS)
Transcat, Inc. is a provider of calibration and laboratory instrument services and a distributor of professional grade test, measurement and control instrumentation. The Company conducts its business through two segments: service (Service) and distribution (Distribution). Through the Service segment, the Company offers calibration, repair, inspection, analytical qualifications, preventative maintenance and other related services, a majority of which are processed through its asset management system, CalTrak (CalTrak). Through its Distribution segment, the Company markets, sells and rents national brand instruments to customers around the globe. The Company is focused on providing its services and products to the life science industries, which include pharmaceutical, biotechnology, medical device manufacturing and other Food and Drug Administration (FDA)-regulated businesses.
