STARRETT LS CO: Entering into a Material Definitive Agreement, Creating a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (Form 8-K)

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Item 1.01. Conclusion of a significant definitive agreement.

               The L.S. Starrett Company, a Massachusetts corporation (the 

“Company”), Tru-Stone Technologies, Inc.a Delaware company (“Tru-Stone”),

               Starrett Kinemetric Engineering, Inc., a Delaware

company (“Starrett Kinemetric”), Starrett Bytewise Development, Inc.a Delaware

               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 

agreement with HSBC Bank USA, National Association (“HSBC” or “Lender”) consisting of a

               $30 million revolving line of credit, a $12.1 million term 

ready and a $7 million capital expenditures use the credit facility. The installations

               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 U.S. borrowing companies 

tested quarterly and Consolidated LS Starrett Company tested semi-annually.

               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 

HSBC Bank USA, National Associationthe L.S. Starrett Company and borrowers.

104            Cover Page Interactive Data File (embedded within the Inline XBRL document)



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