Kimball Electronics Reports Material Agreement Changes

TL;DR

Kimball Electronics just signed and then ditched a big deal, and now owes money.

AI Summary

Kimball Electronics, Inc. filed an 8-K on December 20, 2024, reporting the entry into and termination of a material definitive agreement, as well as the creation of a direct financial obligation. The filing indicates a change in their contractual and financial commitments.

Why It Matters

This filing signals significant shifts in Kimball Electronics' contractual relationships and financial obligations, which could impact its operational structure and financial health.

Risk Assessment

Risk Level: medium — The termination of a material definitive agreement and the creation of new financial obligations suggest potential instability or significant strategic changes within the company.

Key Players & Entities

• Kimball Electronics, Inc. (company) — Registrant
• December 20, 2024 (date) — Date of Report
• Indiana (jurisdiction) — State of Incorporation
• 1205 Kimball Boulevard, Jasper, Indiana 47546 (address) — Principal Executive Offices

FAQ

Key Financial Figures

• $50 million — uary 3, 2023 to allow for borrowings of $50 million and amended on January 5, 2024 to incre
• $100 million — y 5, 2024 to increase the borrowings to $100 million (the "Secondary Credit Facility"). Amon
• $300 million — for such revolving borrowings, (2) the $300 million in revolving borrowing commitments, and
• $150 million — r revolving borrowings by an additional $150 million (to a total of $450 million) at the Com
• $450 million — additional $150 million (to a total of $450 million) at the Company's request, subject to t
• $15 million — hand in the United States in excess of $15 million to adjusted consolidated EBITDA, determ

Filing Documents

• ke-20241220.htm (8-K) — 43KB
• exhibit101amendedandrestat.htm (EX-10.1) — 1348KB
• chaselogo1a.jpg (GRAPHIC) — 3KB
• jpmlogoa.jpg (GRAPHIC) — 4KB
• ke-20241220_g1.jpg (GRAPHIC) — 686KB
• 0001606757-24-000075.txt ( ) — 3324KB
• ke-20241220.xsd (EX-101.SCH) — 2KB
• ke-20241220_def.xml (EX-101.DEF) — 14KB
• ke-20241220_lab.xml (EX-101.LAB) — 25KB
• ke-20241220_pre.xml (EX-101.PRE) — 15KB
• ke-20241220_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement On December 20, 2024, Kimball Electronics, Inc. (the "Company") entered into an amended and restated credit agreement (the "Restated Credit Agreement") among the Company, the lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent and Bank of America, N.A., as Documentation Agent. The Restated Credit Agreement amends and restates the Company's primary credit facility from May 4, 2022 (the "Primary Credit Facility"). The Restated Credit Agreement also replaces the Company's 364-day multi-currency revolving credit facility that we entered into on February 3, 2023 to allow for borrowings of $50 million and amended on January 5, 2024 to increase the borrowings to $100 million (the "Secondary Credit Facility"). Among other things, the Restated Credit Agreement (1) adds a term loan borrowing facility that provides for term loan borrowings repayable in scheduled quarterly installments beginning March 31, 2025, until the maturity date in December 2029; (2) defines the interest rate calculation method and interest payment date for the term loan borrowings; (3) defines the aggregate amount of the lenders' term commitments as $100 million with a maturity date of December 20, 2029; (4) defines the repayment schedule for the term loan borrowings; (5) adds an additional lending partner; and (6) provides for updates to the U.S. subsidiaries of the Company that are joined as loan parties. The terms for the revolving borrowings remain largely unchanged in the Restated Credit Agreement. It continues to maintain (1) the maturity date of May 4, 2027 for such revolving borrowings, (2) the $300 million in revolving borrowing commitments, and (3) the option to increase the amount available for revolving borrowings by an additional $150 million (to a total of $450 million) at the Company's request, subject to the consent of each lender participating in such increase. Pursuant to the Restated Credit Agreement, the

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement Concurrently with its entry into the Restated Credit Agreement and pursuant to its terms, the Company repaid the Secondary Credit Facility in full. The Secondary Credit Facility was originally scheduled to mature on January 3, 2025.

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 the Restated Credit Agreement 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 Amended and Restated Credit Agreement, dated as of December 20 , 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: December 20, 2024

View Full Filing

View this 8-K filing on SEC EDGAR