Business Context and Reporting Period
Company: STRATTEC SECURITY CORPORATION
Filing Type: Form 8-K (Current Report)
Date of Report: March 27, 2018
Event: Entry into a Material Definitive Agreement regarding a credit facility amendment.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or overall debt levels for the Company. The only specific financial metric disclosed relates to a subsidiary's credit facility:
- Subsidiary: ADAC-STRATTEC, LLC (majority-owned subsidiary).
- Credit Facility: Secured revolving credit facility with BMO Harris Bank N.A.
- Previous Maximum Availability: $25 million.
- New Maximum Availability: $30 million.
- Effective Date: March 27, 2018.
- Expiration of Increase: June 30, 2019.
Material Changes Versus Prior Period
The filing details a temporary increase in borrowing capacity for the subsidiary ADAC-STRATTEC. The maximum borrowing availability under the Credit Agreement was increased by $5 million (from $25 million to $30 million). This represents the fifth amendment to the original June 28, 2012 Credit Agreement. No other material changes to financial position or operations are disclosed in this document.
Guidance, Outlook, and Risks
Management Commentary: The filing contains no forward-looking guidance, outlook, or management commentary beyond the description of the credit agreement amendment.
Risks and Contingencies: The filing does not explicitly list new risks or contingencies. The amendment includes "certain other changes" detailed in the attached Exhibit 10.1, but the text of the 8-K does not specify these changes.
Unusual Items: None reported.
Important Facts for Investor Verification
- Verify the specific terms of the "certain other changes" mentioned in the Amendment by reviewing Exhibit 10.1 (Amendment No. 5 to ADAC-STRATTEC Credit Agreement).
- Confirm the impact of the increased borrowing availability on the Company's overall liquidity and leverage ratios, as this filing does not provide consolidated debt figures.
- Note that the increased borrowing limit is temporary and expires on June 30, 2019.
- Identify the lender as BMO Harris Bank N.A.