STRATTEC SECURITY CORP Enters Material Definitive Agreement

TL;DR

STRATTEC just signed a big deal, expect financial moves.

AI Summary

On May 31, 2024, STRATTEC SECURITY CORP entered into a material definitive agreement related to a direct financial obligation. The company, incorporated in Wisconsin with its principal executive offices at 3333 West Good Hope Road, Milwaukee, WI 53209, filed this 8-K report to disclose this significant financial event.

Why It Matters

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

Risk Assessment

Risk Level: medium — Entering into material definitive agreements can introduce new financial obligations or risks that may not be immediately apparent.

Key Players & Entities

• STRATTEC SECURITY CORP (company) — Registrant
• May 31, 2024 (date) — Date of earliest event reported
• 3333 West Good Hope Road, Milwaukee, Wisconsin 53209 (address) — Principal Executive Offices

FAQ

Key Financial Figures

• $25,000,000 — se the revolving credit commitment from $25,000,000 to $20,000,000 as of the effective date
• $20,000,000 — g credit commitment from $25,000,000 to $20,000,000 as of the effective date of the Amendme
• $18,000,000 — sing the revolving credit commitment to $18,000,000 on August 1, 2025, (2) extend the matur
• $40,000,000 — equired minimum tangible net worth from $40,000,000 to $45,000,000. The foregoing summary i
• $45,000,000 — tangible net worth from $40,000,000 to $45,000,000. The foregoing summary is not complete

Filing Documents

• form_8-k_credit_am_10_20.htm (8-K) — 41KB
• strt-ex10_1.htm (EX-10.1) — 43KB
• 0000950170-24-067295.txt ( ) — 85KB

01

Item 1.01 Entry into a Material Definitive Agreement. Effective as of May 31, 2024, ADAC-STRATTEC, LLC (“ ADAC-STRATTEC ”), a majority owned subsidiary of STRATTEC SECURITY CORPORATION (the “ Company ”), entered into a tenth amendment (the “ Amendment ”) to its June 28, 2012 Credit Agreement, as previously amended by an Amendment No. 1 dated January 22, 2014, an Amendment No. 2 dated June 25, 2015, an Amendment No. 3 dated April 27, 2016, an Amendment No. 4 dated June 26, 2017, an Amendment No. 5 dated March 27, 2018, an Amendment No. 6 dated December 30, 2018, an Amendment No. 7 dated October 28, 2019, an Amendment No. 8 dated June 1, 2021, and an Amendment No. 9 dated February 6, 2023 (collectively, the “ ADAC-STRATTEC Credit Agreement ”), with BMO Harris Bank N.A., as lender. The Amendment amends the ADAC-STRATTEC Credit Agreement to, among other things, (1) decrease the revolving credit commitment from $25,000,000 to $20,000,000 as of the effective date of the Amendment (as defined below) and further decreasing the revolving credit commitment to $18,000,000 on August 1, 2025, (2) extend the maturity date from August 1, 2024 to August 1, 2026, (3) increase the interest rate margin on SOFR Loans (as defined in the Credit Agreement) from 1.25% to 3.00%, (4) increase the interest rate margin on Adjusted Base Rate Loans (as defined in the Credit Agreement) from 0.00% to 2.00%, (5) increase the unused fee from 0.15% to 0.25%, and (6) increase the required minimum tangible net worth from $40,000,000 to $45,000,000. The foregoing summary is not complete and is qualified in its entirety by reference to the full and complete terms of the Amendment, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. As described above under Item 1.01, effective May 31, 2024, ADAC-STRATTEC entered into an amendment to its credit agreement with BMO Harris Bank N.A.. to, among other things, (1) decrease the revolving credit commitment from $25,000,000 to $20,000,000 as of the effective date of the Amendment (as defined below) and further decreasing the revolving credit commitment to $18,000,000 on August 1, 2025, (2) extend the maturity date from August 1, 2024 to August 1, 2026, (3) increase the interest rate margin on SOFR Loans (as defined in the Credit Agreement) from 1.25% to 3.00%, (4) increase the interest rate margin on Adjusted Base Rate Loans (as defined in the Credit Agreement) from 0.00% to 2.00%, (5) increase the unused fee from 0.15% to 0.25%, and (6) increase the required minimum tangible net worth from $40,000,000 to $45,000,000. The foregoing summary is not complete and is qualified in its entirety by reference to the full and complete terms of the Amendment, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits . Exhibit Number Description 10.1 Amendment No. 10 to ADAC-STRATTEC Credit Agreement, dated as of May 31, 2024, between ADAC-STRATTEC, LLC and BMO Harris Bank N.A., as lender. 104 104 – 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. STRATTEC SECURITY CORPORATION By: /s/ Dennis Bowe Dennis Bowe, Vice President and Chief Financial Officer Date: May 31, 2024

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View this 8-K filing on SEC EDGAR