SIFCO Industries Reports Material Agreements and Obligations

TL;DR

SIFCO inked and axed deals, now has new financial obligations.

AI Summary

On October 17, 2024, SIFCO Industries, Inc. entered into a material definitive agreement and also terminated a material definitive agreement. The company also created a direct financial obligation or an obligation under an off-balance sheet arrangement. Specific details regarding the nature of these agreements and obligations are not provided in this filing.

Why It Matters

This filing indicates significant changes in SIFCO Industries' contractual and financial commitments, which could impact its future operations and financial health.

Risk Assessment

Risk Level: medium — The filing indicates significant changes in material agreements and financial obligations, the details of which are not fully disclosed, creating uncertainty.

Key Players & Entities

• SIFCO Industries, Inc. (company) — Registrant
• October 17, 2024 (date) — Date of earliest event reported
• Ohio (jurisdiction) — State of incorporation
• Cleveland (location) — Principal executive offices

FAQ

Key Financial Figures

• $20 million — ggregate principal amount not to exceed $20 million (the "Revolver") and a term loan in the
• $3 million — oan in the original principal amount of $3 million (the "Term Loan"). The Loan Agreement a
• $2.5 million — The Loan Agreement also provides for a $2.5 million Letter of Credit subfacility (the "Lett
• $12,577,627.34 — orate purposes. As of the Closing Date, $12,577,627.34 was outstanding under the New Credit Fa
• $230,000 — r to pay a Closing Fee in the amount of $230,000 (of which $115,000 is payable on the Cl
• $115,000 — Fee in the amount of $230,000 (of which $115,000 is payable on the Closing Date and $115
• $126,000 — lateral Monitoring Fee in the amount of $126,000, which fee shall be paid in installment
• $3,500 — ments as follows: (a) equal payments of $3,500 shall be payable on the Closing Date an

Filing Documents

• sif-20241017.htm (8-K) — 39KB
• exh101sienaloanandsecurity.htm (EX-10.1) — 708KB
• 0000090168-24-000046.txt ( ) — 1005KB
• sif-20241017.xsd (EX-101.SCH) — 2KB
• sif-20241017_lab.xml (EX-101.LAB) — 21KB
• sif-20241017_pre.xml (EX-101.PRE) — 12KB
• sif-20241017_htm.xml (XML) — 3KB

01

Item 1.01 Entry Into a Material Definitive Agreement. On October 17, 2024, SIFCO Industries, Inc. (the "Company") and Quality Aluminum Forge, LLC, a wholly-owned subsidiary of the Company ("QAF, and together with the Company, the "Borrowers"), entered into a Loan and Security Agreement (the "Loan Agreement") among the Company and QAF, as borrowers, Siena Lending Group LLC, as Lender, and each of the Affiliates of the Borrowers signatory to the Loan Agreement from time to time as guarantors. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Loan Agreement. The Loan Agreement provides for a three (3) year, senior secured revolving credit facility in an aggregate principal amount not to exceed $20 million (the "Revolver") and a term loan in the original principal amount of $3 million (the "Term Loan"). The Loan Agreement also provides for a $2.5 million Letter of Credit subfacility (the "Letter of Credit Subfacility," and collectively with the Revolver and the Term Loan, the "New Credit Facility"). Proceeds of borrowings under the New Credit Facility are being used to refinance the Company's Existing Credit Facility (as defined in Item 1.02, below) and will also be available for working capital, capital expenditures and other general corporate purposes. As of the Closing Date, $12,577,627.34 was outstanding under the New Credit Facility. In consideration of the execution and delivery by the Lender of the Loan Agreement, the Borrowers agreed pursuant to the Fee Letter to pay a Closing Fee in the amount of $230,000 (of which $115,000 is payable on the Closing Date and $115,000 is payable on the first anniversary of the Closing Date, with the remaining amount (if any) of the Closing Fee to be paid in full on the Maturity Date). Borrowing under the Revolver and the Letter of Credit Subfacility will bear interest at an annual rate of 4.5% plus the Adjusted Term SOFR (or, if the Base Rate is applicable a provided in

02

Item 1.02 Termination of a Material Definitive Agreement. On October 17, 2024, the Company terminated the Credit Agreement and Export Credit Agreement (collectively, the "Existing Credit Agreement") between the Company and certain of its subsidiaries as borrowers and JP Morgan Chase Bank, N.A. The credit facility under the Existing Credit Agreement (the "Existing Credit Facility") and the Existing Credit Agreement were terminated in their entirety in connection with the execution and delivery of the Loan Agreement and the New Credit Facility described in Item 1.01, above.

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth in Item 1.01 hereof is incorporated herein by reference.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits 10.1 Loan and Security Agreement dated October 17, 2024 among Siena Lending Group LLC, SIFCO Industries, Inc., Quality Aluminum Forge, LLC and each of the Affiliates of the Borrowers signatory thereto from time to time as guarantors.

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. SIFCO Industries, Inc. (Registrant) Date: October 23, 2024 /s/ Thomas R. Kubera Thomas R. Kubera Chief Financial Officer (Principal Financial Officer)

View Full Filing

View this 8-K filing on SEC EDGAR