NN Inc. Enters New Agreement, Terminates Old One

Ticker: NNBR · Form: 8-K · Filed: 2025-01-02T00:00:00.000Z

Sentiment: neutral

Topics: material-agreement, obligation, termination

TL;DR

NN Inc. just signed a new deal and ditched an old one, watch for financial shifts.

AI Summary

On December 30, 2024, NN, Inc. entered into a material definitive agreement and simultaneously terminated another. This filing also indicates the creation of a direct financial obligation or an off-balance sheet arrangement for the registrant. The company, formerly known as NN Ball & Roller Inc., is incorporated in Delaware and headquartered in Charlotte, North Carolina.

Why It Matters

This filing signals a significant change in NN Inc.'s contractual obligations, potentially impacting its financial structure and future operations.

Risk Assessment

Risk Level: medium — The entry into a new material definitive agreement and termination of another, along with the creation of new financial obligations, introduces uncertainty and potential financial risk.

Key Players & Entities

FAQ

What is the nature of the material definitive agreement entered into by NN, Inc. on December 30, 2024?

The filing indicates the entry into a material definitive agreement but does not specify its nature in the provided text.

Which material definitive agreement was terminated by NN, Inc. on December 30, 2024?

The filing states that a material definitive agreement was terminated, but the specific agreement is not identified in the provided text.

What new financial obligation or off-balance sheet arrangement was created by NN, Inc.?

The filing confirms the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement, but the details are not provided in the excerpt.

When was NN, Inc. formerly known as NN Ball & Roller Inc. and when did the name change occur?

The filing states the former company name was NN Ball & Roller Inc. and the date of the name change was February 3, 1994.

What is NN, Inc.'s Standard Industrial Classification (SIC) code and what industry does it represent?

NN, Inc.'s SIC code is 3540, which corresponds to METALWORKING MACHINERY & EQUIPMENT.

Filing Stats: 1,367 words · 5 min read · ~5 pages · Grade level 10.4 · Accepted 2025-01-02 16:00:56

Key Financial Figures

Filing Documents

01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT. ABL Credit Agreement On December 30, 2024, NN, Inc., a Delaware corporation (the "Company") closed on a new asset backed credit facility (the "ABL Facility"). The ABL Facility is governed by a Credit Agreement (the "ABL Credit Agreement") by and among the Company, certain Company subsidiaries, the lenders party thereto, and PNC Bank, National Association, as administrative agent for the lenders. Amount . The ABL Credit Agreement provides for a senior secured revolving credit facility in the amount of $50 million, of which $15 million will be available in the form of letters of credit and $5.0 million will be available for the issuance of short-term swingline loans. The ABL Credit Agreement allows the Borrower to request the establishment of one or more additional revolving commitments in an aggregate amount of up to $15.0 million subject to specified terms and conditions. The availability of credit under the ABL Facility is limited by a borrowing base, which is 85% of the eligible accounts receivable of the Company and its subsidiaries plus up to 90% of eligible investment grade receivables and 90% of the eligible insured receivables, plus the lesser of (a) up to 75% of the eligible inventory and (b) up to 90% of the net orderly liquidation value of eligible inventory, less the undrawn amounts under outstanding letters of credit and reserves established by the administrative agent, all as defined in the ABL Credit Agreement. Interest . The interest rate is (1) the highest of (i) the Base Rate and (ii) the sum of the Overnight Bank Funding Rate plus 0.50% and (iii) the sum of Daily Simple SOFR plus 1.0%, or (2) the one, three or six month Term SOFR Rate plus 1.50%, plus a SOFR adjustment of 0.10%, all as defined in the ABL Credit Agreement. Maturity . The final maturity date of the ABL Credit Agreement is the earlier to occur of (a) December 30, 2029 and (b) the date that is 90 days prior to the maturity date

02 TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT

ITEM 1.02 TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT. On December 30, 2024, the Company terminated its existing $50.0 million asset backed credit facility (as amended from time to time) dated March 22, 2021, by and among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. 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 above in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

01 REGULATION FD DISCLOSURE

ITEM 7.01 REGULATION FD DISCLOSURE On January 2, 2025, the Company issued a press release announcing the new ABL Agreement. A copy of this press release is included as Exhibit 99.1 to this Current Report on Form 8-K. Pursuant to the rules and regulations of the SEC, the information furnished pursuant to Item 7.01 of this Current Report (including Exhibit 99.1) is deemed to have been furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

01 FINANCIAL STATEMENTS AND EXHIBITS

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits. Exhibit No. Description of Exhibit 10.1 Revolving Credit and Security Agreement, dated as of December 30, 2024, by and among NN, Inc., certain subsidiaries of NN, Inc., the lenders party thereto and PNC Bank, National Association., as administrative agent. 10.2 Amendment No. 5 to Term Loan Credit Agreement, dated as of December 30, 2024, by and between NN, Inc., certain subsidiaries of NN, Inc. and Oaktree Fund Administration, LLC, as administrative agent and collateral agent. 99.1 Press Release issued by NN, Inc., dated January 2, 2025 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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. Date: January 2, 2025 NN, INC. By: /s/ Christopher H. Bohnert Name: Christopher H. Bohnert Title: Senior Vice President and Chief Financial Officer

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