Kimball Electronics Inks Material Agreement, New Financial Obligation
Ticker: KE · Form: 8-K · Filed: Jan 5, 2024 · CIK: 1606757
| Field | Detail |
|---|---|
| Company | Kimball Electronics, Inc. (KE) |
| Form Type | 8-K |
| Filed Date | Jan 5, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $100 million, $50 million |
| Sentiment | neutral |
Complexity: simple
Sentiment: neutral
Topics: debt, material-agreement, financial-obligation
TL;DR
**Kimball Electronics just took on new debt or a major contract, watch for details on its impact.**
AI Summary
Kimball Electronics, Inc. (KE) filed an 8-K on January 5, 2024, to report entering into a material definitive agreement and creating a direct financial obligation. This filing indicates that the company has taken on new debt or a significant contractual commitment, which could impact its financial flexibility and future earnings. Investors should understand that new obligations, while potentially funding growth, also introduce repayment risks and interest expenses that could affect the stock's valuation.
Why It Matters
This filing signals a new financial commitment for Kimball Electronics, which could either fuel strategic growth or add to its debt burden, directly influencing its financial health and stock performance.
Risk Assessment
Risk Level: medium — The filing indicates new financial obligations without specifying the amount or purpose, creating uncertainty about the company's future financial health.
Analyst Insight
Investors should seek further details on the nature and terms of the 'Material Definitive Agreement' and 'Direct Financial Obligation' to assess the potential impact on Kimball Electronics' balance sheet and future profitability before making investment decisions.
Key Players & Entities
- Kimball Electronics, Inc. (company) — the registrant filing the 8-K
- January 5, 2024 (date) — date of earliest event reported
- 001-36454 (other) — Commission File Number
- KE (other) — Trading Symbol for Common Stock
- The Nasdaq Stock Market LLC (other) — exchange where Common Stock is registered
FAQ
What specific items did Kimball Electronics, Inc. report in this 8-K filing?
Kimball Electronics, Inc. reported an 'Entry into a Material Definitive Agreement' and 'Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant' as per the 'ITEM INFORMATION' section of the filing.
What is the date of the earliest event reported in this 8-K filing?
The date of the earliest event reported in this 8-K filing is January 5, 2024, as stated under 'Date of Report (Date of earliest event reported)'.
What is Kimball Electronics, Inc.'s trading symbol and on which exchange is its common stock registered?
Kimball Electronics, Inc.'s trading symbol is KE, and its Common Stock, no par value, is registered on The Nasdaq Stock Market LLC, as indicated under 'Securities registered pursuant to Section 12(b) of the Act'.
What is the business address and phone number of Kimball Electronics, Inc.?
The business address of Kimball Electronics, Inc. is 1205 Kimball Boulevard, Jasper, Indiana 47546, and its telephone number is (812) 634-4000, according to the 'BUSINESS ADDRESS' and 'BUSINESS PHONE' sections.
What is the Central Index Key (CIK) for Kimball Electronics, Inc.?
The Central Index Key (CIK) for Kimball Electronics, Inc. is 0001606757, as listed under 'COMPANY DATA' in the filing.
Filing Stats: 613 words · 2 min read · ~2 pages · Grade level 11.1 · Accepted 2024-01-05 16:19:30
Key Financial Figures
- $100 million — nt (1) increases the borrowing limit to $100 million from $50 million and (2) changes the ma
- $50 million — he borrowing limit to $100 million from $50 million and (2) changes the maturity date from
Filing Documents
- ke-20240105.htm (8-K) — 33KB
- ke01052024ex101amendmentto.htm (EX-10.1) — 65KB
- ke-20240105_g1.jpg (GRAPHIC) — 686KB
- 0001606757-24-000002.txt ( ) — 1819KB
- ke-20240105.xsd (EX-101.SCH) — 2KB
- ke-20240105_def.xml (EX-101.DEF) — 14KB
- ke-20240105_lab.xml (EX-101.LAB) — 27KB
- ke-20240105_pre.xml (EX-101.PRE) — 15KB
- ke-20240105_htm.xml (XML) — 3KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement On January 5, 2024, Kimball Electronics, Inc. (the "Company") amended (the "first amendment") its 364-day multi-currency revolving credit facility agreement (the "secondary credit facility") dated as of February 3, 2023 among the Company, the lenders party thereto, JPMorgan Chase Bank, N. A. as Administrative Agent, and Bank of America, N.A. as Documentation Agent, which was originally filed as Exhibit 10.2 to the Company's Form 10-Q filed on February 7, 2023. Among other things, the first amendment (1) increases the borrowing limit to $100 million from $50 million and (2) changes the maturity date from February 2, 2024 to January 3, 2025. The foregoing description of first amendment does not purport to be complete and is qualified by its entirety by reference to the full text of first amendment, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
03 Creation of a Direct Financial Obligation under an Off-Balance Sheet Arrangement of a Registrant
Item 2.03 Creation of a Direct Financial Obligation under an Off-Balance Sheet Arrangement of a Registrant The information set forth under Item 1.01 related to first amendment to secondary credit facility is incorporated by reference in this Item 2.03.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits (d) Exhibits The following exhibits are filed as part of this report: Exhibit Number Description 10.1 First Amendment to Credit Agreement, dated as of January 5 , 2024, among Kimball Electronics, Inc., the lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent and Bank of America, N.A., as Documentation Agent 104 Cover Page Interactive Data File (formatted in Inline XBRL)
SIGNATURES
SIGNATURES 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. KIMBALL ELECTRONICS, INC. By: /s/ Jana T. Croom JANA T. CROOM Chief Financial Officer Date: January 5, 2024