Astronics Corp Enters Material Definitive Agreement

TL;DR

Astronics Corp just signed a big deal, creating a new financial obligation. Details to follow.

AI Summary

Astronics Corporation entered into a material definitive agreement on March 27, 2024, related to a direct financial obligation. The company, headquartered in East Aurora, New York, filed this 8-K report on April 1, 2024, detailing the creation of this obligation.

Why It Matters

This filing indicates a significant financial commitment or obligation for Astronics Corporation, which could impact its financial health and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and creating financial obligations can introduce financial risks and impact the company's balance sheet.

Key Players & Entities

• ASTRONICS CORP (company) — Registrant
• March 27, 2024 (date) — Date of earliest event reported
• April 1, 2024 (date) — Date of report
• East Aurora, New York (location) — Principal executive offices

FAQ

Key Financial Figures

• $5 m — rrow under the revolving credit line by $5 million, from $115 million to $120 millio
• $115 million — volving credit line by $5 million, from $115 million to $120 million, with borrowings subjec
• $120 m — ine by $5 million, from $115 million to $120 million, with borrowings subject to a bor
• $120 million — ncrease in the revolving credit line to $120 million had expired on February 1, 2024. The

Filing Documents

• atro-20240327.htm (8-K) — 27KB
• a032724exhibit101.htm (EX-10.1) — 99KB
• a032724exhibit102.htm (EX-10.2) — 105KB
• 0000008063-24-000021.txt ( ) — 375KB
• atro-20240327.xsd (EX-101.SCH) — 2KB
• atro-20240327_lab.xml (EX-101.LAB) — 21KB
• atro-20240327_pre.xml (EX-101.PRE) — 12KB
• atro-20240327_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. The disclosure set forth in Item 2.03 below is incorporated in this Item 1.01 by reference. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. Astronics Corporation (the "Company") amended its existing asset-based credit facility on March 27, 2024 by entering into the Third Amendment (the "ABL Amendment") to the Sixth Amended and Restated Credit Agreement (the "ABL Agreement"), as amended, with HSBC Bank USA, National Association, as Agent and Co-Collateral Agent, Wells Fargo Bank, N.A., as Co-Collateral Agent, and the lenders signatory thereto. The ABL Amendment increased the maximum aggregate amount that the Company can borrow under the revolving credit line by $5 million, from $115 million to $120 million, with borrowings subject to a borrowing base determined primarily by inventory and accounts receivable. The increase will expire on the earlier of (x) the date on which the Agent receives the quarterly financial statements for the fiscal quarter ending March 31, 2024, and (y) May 15, 2024. The previous temporary increase in the revolving credit line to $120 million had expired on February 1, 2024. The ABL Amendment also amends certain financial covenants to (i) increase the maximum amount of capital expenditures that the Company and its subsidiaries are permitted to make during four consecutive fiscal quarter periods ending on specified dates, and (ii) decrease the minimum amount of Consolidated EBITDA (as defined in the ABL Agreement) that the Company and its subsidiaries are required to earn during the four consecutive fiscal quarter periods ending as of the end of the first, second and third quarters of 2024 (collectively, the "Covenant Changes"). The Company also entered into Amendment No. 2 (the "Term Loan Amendment") to Credit Agreement (the "Term Loan Agreement") on March 27, 2024, with Great Rock Capital Partners Manageme

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. Exhibit Description 10.1 Third Amendment to Sixth Amended and Restated Credit Agreement, entered into as of March 27, 2024, by and among Astronics Corporation, the other Loan Parties party thereto, each Lender party thereto, HSBC Bank USA, National Association, as Agent, Co-Collateral Agent, Swing Line Lender and Issuing Bank, and Wells Fargo Bank, N.A., as Joint Lead Arranger and Co-Collateral Agent 10.2 Amendment No. 2 to Credit Agreement, entered into as of March 27, 2024, by and among Astronics Corporation, the other Loan Parties party thereto, the lenders party thereto and Great Rock Capital Partners Management, LLC, as agent 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Astronics Corporation Dated: April 1, 2024 By: /s/ David C. Burney Name: David C. Burney Executive Vice President and Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR