TTM Technologies, Inc. - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by TTM Technologies, Inc. on July 21, 2005, covering events occurring on July 15, 2005. The filing reports the entry into a material definitive agreement regarding the company's credit facilities.
Key Financial Metrics and Debt Structure
The filing details the establishment of a new revolving credit facility with the following terms:
- Facility Amount: $25 million revolving credit facility.
- Maturity Date: July 2008.
- Interest Rate: Floating rate based on either the Alternate Base Rate (greater of federal funds rate + 0.5% or prime rate) or LIBOR, plus a spread determined by the company's consolidated Leverage Ratio.
- Lenders: Wachovia Bank, National Association (Administrative Agent), Comerica Bank (Syndication Agent), and Silicon Valley Bank (Documentation Agent).
The filing text does not provide specific values for revenue, profit, cash flow, margins, or existing debt levels as of the reporting date.
Material Changes and Covenants
The Second Amended and Restated Credit Agreement introduces customary limitations and financial covenants, including:
- Limitations on indebtedness, liens, investments, acquisitions, dividends, and stock redemptions.
- Restrictions on mergers, consolidations, asset sales, and affiliate transactions.
- Financial Covenants: Minimum fixed charge coverage ratios and maximum leverage ratios.
Outlook, Risks, and Contingencies
The agreement outlines standard events of default, including nonpayment, covenant violations, cross-defaults, change of control, insolvency, and material judgments. Some defaults allow for grace periods or are subject to materiality thresholds. The filing does not contain specific management commentary on future revenue guidance or operational outlook beyond the terms of the credit agreement.
Key Facts for Investor Verification
- Verify the company's current consolidated Leverage Ratio to determine the applicable interest rate spread.
- Confirm compliance with the new minimum fixed charge coverage and maximum leverage ratio covenants.
- Review the full text of the Second Amended and Restated Credit Agreement (Exhibit 10.1) for specific definitions of "Leverage Ratio" and "Fixed Charge Coverage."
- Monitor for any future filings regarding utilization of the $25 million facility or amendments to the agreement.