Business Context and Reporting Period
TTM Technologies, Inc., a Washington corporation, filed this Form 8-K on September 29, 2000, reporting the execution of an amended and restated credit agreement. The report covers events occurring between September 29, 2000, and October 17, 2000, regarding the establishment of a new Credit Facility.
Key Financial Metrics and Debt Structure
The filing details the structure of the new Credit Facility rather than operational financial performance metrics such as revenue or profit.
- Total Facility Size: Up to $70 million combined.
- Term Facility: Up to $45 million, amortizing in 20 quarterly installments through September 30, 2005.
- Revolving Line of Credit: Up to $25 million, including a $5 million swingline loan subfacility, expiring September 29, 2005.
- Collateral: All borrowings are collateralized by the Company's assets.
- Interest Rates: Variable rates based on LIBOR plus 100 to 200 basis points or an alternate base rate plus 0 to 50 basis points, dependent on leverage ratios.
Material Changes Versus Prior Period
The filing does not provide comparative financial data or specific details regarding the prior credit facility to quantify material changes in debt load or terms. The primary change is the replacement of previous financing arrangements with the new syndicated Credit Facility managed by First Union National Bank.
Guidance, Covenants, and Risks
The Credit Facility imposes strict financial covenants and restrictive terms:
- Financial Covenants: The Company must maintain specific leverage and interest coverage ratios and meet consolidated net worth benchmarks.
- Operational Restrictions: Capital expenditure limits are in place.
- Prepayment Requirements: Proceeds from the sale of debt or material assets must be applied to prepay the Credit Facility, subject to exceptions.
- Fees: The Company is required to pay commitment fees on unused revolver amounts and letter of credit fees.
The filing does not contain forward-looking guidance on revenue, earnings, or strategic outlook.
Key Facts for Investor Verification
- Verify the Company's current leverage ratios to ensure compliance with the new covenants.
- Confirm the total outstanding balance drawn against the $70 million facility as of the latest reporting date.
- Review the specific capital expenditure limits to assess potential constraints on future growth investments.
- Monitor the Company's ability to meet the quarterly amortization schedule for the $45 million term loan.