| |
(a) |
On July 20, 2020, Kewaunee Scientific Corporation
(the “Company”) entered into a Ninth Amendment to Credit and
Security Agreement, Fifth Amendment to Revolving Line of Credit
Note and Waiver (the “Amendment”) with Wells Fargo Bank, National
Association (the “Bank”). The Amendment made certain changes to the
Credit and Security Agreement, dated as of May 6, 2013, as
amended (the “Credit Agreement”), between the Company and the Bank,
and to the Revolving Line of Credit Note, dated May 6, 2013,
made by the Company and payable to the order of the Bank, as
amended (the “Revolving Note”). The changes included
(i) revising the amounts under the minimum EBITDA covenant
applicable to the first three fiscal quarters of fiscal 2021 (to $0
for the quarter ending July 31, 2020, $0 for the quarter
ending October 31, 2020, determined for the two-quarter period then ending, and
$350,000 for the quarter ending fiscal January 31, 2021,
determined for the three-quarter period then ending, respectively);
(ii) reducing the amount under the minimum liquidity covenant
(from $3,000,000 to $2,000,000); (iii) changing the Applicable
Margin for LIBOR advances to 4.00%, and for Prime Rate advances to
3.00%; and (iv) certain other related and/or immaterial
changes. In addition, the Amendment included a waiver of any
noncompliance with the minimum EBITDA covenant during the fiscal
quarter ended April 30, 2020. The foregoing description is
qualified in its entirety by reference to the Amendment, a copy of
which is filed as Exhibit 10.1 to this Current Report on Form
8-K and is incorporated
herein by reference.
|
