Business Context and Reporting Period
Company: STRATTEC SECURITY CORPORATION
Filing Type: Form 8-K (Current Report)
Date of Report: April 27, 2016
Event: Entry into a Material Definitive Agreement regarding a credit facility amendment for a majority-owned subsidiary, ADAC-STRATTEC, LLC.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or overall corporate debt levels. It specifically addresses the terms of a secured revolving credit facility for the subsidiary ADAC-STRATTEC, LLC:
- Lender: BMO Harris Bank N.A.
- Previous Maximum Borrowing Availability: $10 million
- New Maximum Borrowing Availability: $20 million
- Extended Term End Date: August 1, 2019
Material Changes Versus Prior Period
The filing details a Third Amendment to the June 28, 2012 Credit Agreement (previously amended in 2014 and 2015). The material changes include:
- Doubling of the maximum borrowing availability from $10 million to $20 million.
- Extension of the credit facility term through August 1, 2019.
- Modifications to the required financial covenants for ADAC-STRATTEC, LLC (specific covenant details are not provided in the summary text).
Guidance, Outlook, and Risks
The filing contains no management commentary, financial guidance, or outlook for the parent company. It notes the creation of a direct financial obligation under the amended credit agreement. The specific risks associated with the new financial covenants are referenced but not detailed in the text provided.
Investor Verification Checklist
- Review Exhibit 99.1 (Amendment No. 3 to Credit Agreement) for specific details on the revised financial covenants.
- Verify the current utilization rate of the ADAC-STRATTEC, LLC credit facility to assess immediate liquidity needs.
- Confirm the impact of the increased borrowing capacity on the consolidated balance sheet of STRATTEC SECURITY CORPORATION.
- Check subsequent filings for any drawdowns on the increased $20 million facility.