Business Context and Reporting Period
Optex Systems Holdings Inc. filed a Form 8-K Current Report on April 5, 2018, regarding an amendment to its material definitive agreement. The company is incorporated in Delaware and maintains its principal executive offices in Richardson, Texas.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or liquidity metrics. The document focuses exclusively on the terms of a debt facility amendment.
- Debt Facility: Revolving credit facility with Avidbank.
- Amendment Date: April 5, 2018.
- New Maturity Date: April 21, 2020.
- Facility Fee: 0.5% of the Revolving Line, payable annually starting April 21, 2018.
Material Changes
The company executed a Seventh Amendment to its Amended and Restated Loan Agreement with Avidbank. The substantive changes include:
- Extension of the revolving maturity date to April 21, 2020.
- Implementation of an annual facility fee of 0.5% of the Revolving Line.
- New banking restrictions: The company may maintain accounts at third-party banks provided the total balance in those accounts does not exceed 20% of the total on deposit at Avidbank.
- Reporting requirement: Monthly statements for all third-party accounts must be remitted to Avidbank within 30 days of the month-end.
Guidance, Outlook, and Risks
The filing contains no management commentary, financial guidance, or outlook for future periods. No specific risks or contingencies are detailed beyond the terms of the amended loan agreement. The filing notes that the summary is qualified in its entirety by the text of the Amendment attached as Exhibit 99.1.
Investor Verification Checklist
- Verify the full text of the Seventh Amendment to the Loan Agreement (Exhibit 99.1) for additional covenants or conditions not summarized in the 8-K.
- Confirm the current outstanding balance of the Revolving Line to calculate the actual annual facility fee obligation.
- Review the company's cash management practices to ensure compliance with the new 20% limit on third-party bank account balances.
- Check subsequent filings for any further amendments or defaults related to the Avidbank facility.