Item 1.01. Conclusion of a significant definitive agreement.
L.S. Starrett Company, a Massachusettscorporation (the
Starrett Kinemetric Engineering, Inc., a Delaware
company (“Starrett Kinemetric”),
corporation ("Starrett Bytewise", and together with L.S.
Starrett, Tru-Stone, Starrett Kinemetric, each a “Borrower” and collectively the
"Borrowers"), has entered into a material definitive
$30 millionrevolving line of credit, a $12.1 millionterm
ready and a
are secured by a valid first-priority security interest on
substantially all of the existing and future assets of the Company and its
subsidiaries. The Company believes that the agreement
provides sufficient liquidity and flexibility to support the
growth needs of the company. The new credit facilities contain financial covenants with
against a minimum fixed charge coverage ratio of 1.00, measured on a
twelve-month basis, for both the
tested quarterly and
The Loan and Security agreement also contains the customary
positive and negative clauses, including debt limitations, privileges,
acquisitions, asset dispositions, fundamental corporate
changes, excess pension contributions and certain customary events of default. On
the occurrence or continuation of an event of default, the
The lender may terminate all commitments and facilities and require the
payment of the entire unpaid principal balances, accrued
interest and all other obligations.
Section 2.03. Creation of a direct financial obligation or an obligation under an off-balance sheet arrangement of a registrant.
To the extent required by Item 2.03 of Form 8-K, the information regarding the Loan and Security Agreement set forth under Item 1.01 of this Form 8-K is filed in this Item 2.03. Item 9.01. Financial Statements and Exhibits
Part number Description
10.1 Loan and Security Agreement, dated
April 29, 2022, among
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