Key Tronic Corporation Announces New Credit Facilities
Key Tronic (Nasdaq: KTCC) has secured new financing arrangements with Bank of Montreal and Callodine Commercial Finance, extending through December 2029. The combined financing provides up to $143 million in availability, subject to borrowing base and other limitations. This new agreement replaces the existing asset-based credit line with Bank of America, which was due to expire in December 2025.
The company expects to write off approximately $0.9 million in unamortized capitalized loan fees. According to CFO Tony Voorhees, the new financing is expected to enhance working capital access, lower interest expenses, and provide greater financial flexibility to support long-term growth plans.
Key Tronic (Nasdaq: KTCC) ha ottenuto nuovi accordi di finanziamento con la Bank of Montreal e Callodine Commercial Finance, che si estenderanno fino a dicembre 2029. Il finanziamento combinato offre fino a 143 milioni di dollari di disponibilità, soggetto a base di prestito e altre limitazioni. Questo nuovo accordo sostituisce la linea di credito basata sugli asset esistente con la Bank of America, che sarebbe scaduta a dicembre 2025.
La società prevede di cancellare circa 0,9 milioni di dollari in spese di prestito capitalizzate non ammortizzate. Secondo il CFO Tony Voorhees, il nuovo finanziamento dovrebbe migliorare l'accesso al capitale circolante, ridurre le spese per interessi e fornire una maggiore flessibilità finanziaria per supportare i piani di crescita a lungo termine.
Key Tronic (Nasdaq: KTCC) ha conseguido nuevos acuerdos de financiación con el Bank of Montreal y Callodine Commercial Finance, que se extienden hasta diciembre de 2029. La financiación combinada proporciona hasta 143 millones de dólares en disponibilidad, sujeta a base de préstamos y otras limitaciones. Este nuevo acuerdo reemplaza la línea de crédito respaldada por activos existente con Bank of America, que estaba programada para expirar en diciembre de 2025.
La empresa espera cancelar aproximadamente 0,9 millones de dólares en tarifas de préstamos capitalizadas no amortizadas. Según el CFO Tony Voorhees, se espera que la nueva financiación mejore el acceso al capital de trabajo, reduzca los gastos por intereses y brinde una mayor flexibilidad financiera para apoyar los planes de crecimiento a largo plazo.
키트로닉 (Nasdaq: KTCC)은 뱅크 오브 몬트리얼(Bank of Montreal) 및 칼로딘 상업 금융(Callodine Commercial Finance)과 새로운 자금 지원 계약을 체결하였으며, 계약의 유효기간은 2029년 12월까지입니다. 결합된 자금 지원은 최대 143백만 달러까지 제공되며, 대출 기초와 기타 제한 사항에 따라 달라집니다. 이 새로운 계약은 2025년 12월에 만료될 예정이었던 뱅크 오브 아메리카(Bank of America)와의 기존 자산 기반 신용 라인을 대체합니다.
회사는 약 90만 달러의 미상환 자본화 대출 수수료를 상각할 것으로 예상하고 있습니다. CFO인 토니 부리히스(Tony Voorhees)에 따르면, 새로운 자금 지원은 운영 자본 접근을 개선하고, 이자 비용을 낮추며, 장기 성장 계획을 지원하기 위해 더 큰 재정적 유연성을 제공할 것으로 예상됩니다.
Key Tronic (Nasdaq: KTCC) a sécurisé de nouveaux accords de financement avec la Banque de Montréal et Callodine Commercial Finance, valables jusqu'en décembre 2029. Le financement combiné offre jusqu'à 143 millions de dollars de disponibilité, soumis à une base d'emprunt et d'autres limitations. Ce nouvel accord remplace la ligne de crédit basée sur les actifs existants avec Bank of America, qui devait expirer en décembre 2025.
L'entreprise s'attend à annuler environ 0,9 million de dollars de frais de prêt capitalisés non amortis. Selon le CFO Tony Voorhees, le nouveau financement devrait améliorer l'accès à des fonds de roulement, réduire les charges d'intérêt et offrir une plus grande flexibilité financière pour soutenir les plans de croissance à long terme.
Key Tronic (Nasdaq: KTCC) hat neue Finanzierungsvereinbarungen mit der Bank of Montreal und Callodine Commercial Finance gesichert, die bis Dezember 2029 laufen. Die kombinierte Finanzierung bietet bis zu 143 Millionen Dollar an Verfügbarkeit, abhängig von der Darlehensbasis und anderen Einschränkungen. Diese neue Vereinbarung ersetzt die bestehende, auf Vermögenswerten basierende Kreditlinie bei der Bank of America, die im Dezember 2025 auslaufen sollte.
Das Unternehmen erwartet, etwa 0,9 Millionen Dollar an nicht amortisierten, kapitalisierten Darlehensgebühren abzuschreiben. Laut CFO Tony Voorhees wird erwartet, dass die neue Finanzierung den Zugang zu Betriebskapital verbessert, die Zinsaufwendungen senkt und eine größere finanzielle Flexibilität bietet, um langfristige Wachstumspläne zu unterstützen.
- Secured new credit facilities providing up to $143 million in availability
- Extended credit facility term through December 2029
- Expected reduction in interest expenses
- Enhanced working capital access and financial flexibility
- One-time write-off of $0.9 million in unamortized capitalized loan fees
Insights
Extends and increases access to working capital
SPOKANE VALLEY, Wash., Dec. 05, 2024 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced that it entered into a new financing arrangement with the Bank of Montreal and Callodine Commercial Finance which extends and increases its access to working capital through December 2029. The combined financing agreement provides up to
“We are excited to update our financing arrangements as we prepare for growth in coming years,” said Tony Voorhees, Chief Financial Officer. “We believe the new financing significantly enhances our access to working capital over the next five years and address liquidity to support our long-term growth plans. Additionally, we anticipate these new facilities will lower our interest expense and provide greater financial flexibility moving forward.”
About Key Tronic
Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. The Company provides its customers with full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com.
Forward-Looking Statements
Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to those including such words as anticipates, believes, expects, will, and similar verbs, or nouns corresponding to such verbs, which may be forward looking. Forward-looking statements also include other passages that are relevant to expected future events, performances, and actions or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to anticipated growth and the availability of financing, reduced interest expense, and financial flexibility under the new financing arrangements. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the future of the global economic environment and its impact on our customers and suppliers; the availability of components from the supply chain; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; timing and effectiveness of ramping of new programs; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the previously reported financial statement restatements and related material weaknesses, the May 2024 cybersecurity incident, and the subject of the internal investigation by the Company’s Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.
| CONTACTS: | Tony Voorhees | Michael Newman | ||
| Chief Financial Officer | Investor Relations | |||
| Key Tronic Corporation | StreetConnect | |||
| (509)-927-5345 | (206) 729-3625 |
FAQ
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