UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT
TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
December 10, 2015
Date of report (Date of earliest event reported)
HUTCHINSON
TECHNOLOGY INCORPORATED
(Exact Name of Registrant as Specified in its Charter)
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Minnesota |
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001-34838 |
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41-0901840 |
(State of Incorporation) |
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(Commission
File Number) |
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(I.R.S. Employer
Identification No.) |
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40 West Highland Park Drive N.E.,
Hutchinson, Minnesota |
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55350 |
(Address of Principal Executive Offices) |
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(Zip Code) |
(320) 587-3797
(Registrants Telephone Number, Including Area Code)
Not Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01. |
Entry into a Material Definitive Agreement. |
On December 10, 2015, we entered into a ninth
amendment to our existing Revolving Credit and Security Agreement dated as of September 16, 2011, as previously amended, with PNC Bank, National Association, as agent and lender. The amendment modifies the Credit Agreement to defer application
of the fixed charge coverage covenant until December 25, 2016, impose a minimum EBITDA requirement for the remaining term of the Senior Secured Credit Facility, and add a new minimum liquidity requirement.
The text of the amendment is attached as Exhibit 10.1 to this current report on Form 8-K and is incorporated herein by reference.
Item 2.03. |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth in Item 1.01 above is hereby incorporated by reference into this Item 2.03.
Item 9.01. |
Financial Statements and Exhibits. |
The Exhibit Index appearing after the Signature Page to this current report is
incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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HUTCHINSON TECHNOLOGY INCORPORATED |
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Date: December 14, 2015 |
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/s/ David P. Radloff |
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David P. Radloff |
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Vice President and Chief Financial Officer |
EXHIBIT INDEX
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Exhibit No. |
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Description |
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Manner of Filing |
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10.1 |
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Amendment No. 9 to Revolving Credit and Security Agreement, dated as of December 10, 2015, with PNC Bank, National Association, as agent and lender |
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Filed Electronically |
Exhibit 10.1
AMENDMENT NO. 9
TO
REVOLVING CREDIT AND SECURITY AGREEMENT
THIS AMENDMENT NO. 9 (this Amendment) is entered into as of December 10, 2015, by and among HUTCHINSON TECHNOLOGY
INCORPORATED, a corporation organized under the laws of the State of Minnesota (HTI) (HTI and each other Person who becomes a Borrower under the Loan Agreement referred to below, each a Borrower, and
collectively Borrowers), the financial institutions set forth on the signature pages hereto (each a Lender and collectively, Lenders) and PNC Bank, National Association as agent for Lenders
(in such capacity, Agent).
BACKGROUND
Borrowers, Agent and Lenders are parties to a Revolving Credit and Security Agreement dated as of September 16, 2011 (as amended,
restated, supplemented or otherwise modified from time to time, the Loan Agreement) pursuant to which Agent and Lenders provide Borrowers with certain financial accommodations.
Borrowers have requested that Agent and Lenders agree to certain amendments to the Loan Agreement, and Agent and Lenders are willing to do so
on the terms and conditions hereafter set forth.
NOW, THEREFORE, in consideration of any loan or advance or grant of credit heretofore or
hereafter made to or for the account of Borrowers by Agent and Lenders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
1. Definitions. All capitalized terms not otherwise defined herein shall have the meanings given to them in the Loan Agreement.
2. Amendment to Loan Agreement. Subject to satisfaction of the conditions precedent set forth in Section 3 below, Section 6.5
of the Loan Agreement is hereby amended in its entirety to provide as follows:
6.5. Financial Covenants.
(a) Minimum EBITDA. Cause EBITDA to be not less than the amount set forth below for the corresponding period set forth
below:
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Period |
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EBITDA |
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For the four fiscal quarters ending on or about December 31, 2015 |
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$ |
12,000,000 |
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For the four fiscal quarters ending on or about March 31, 2016 |
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$ |
11,000,000 |
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For the four fiscal quarters ending on or about June 30, 2016 |
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$ |
13,000,000 |
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For the four fiscal quarters ending on or about September 30, 2016 |
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$ |
14,000,000 |
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(b) Fixed Charge Coverage Ratio. Cause to be maintained a Fixed Charge
Coverage Ratio as of the end of each period set forth below of not less than the corresponding Fixed Charge Coverage Ratio for such period set forth below:
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Period |
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Fixed Charge Coverage Ratio |
For the fiscal quarter ending on or about December 31, 2016 |
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1.05 : 1.00 |
For the two fiscal quarters ending on or about March 31, 2017 |
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1.05 : 1.00 |
For the three fiscal quarters ending on or about June 30, 2017 |
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1.05 : 1.00 |
For the four fiscal quarters ending on or about September 30, 2017 and for each four fiscal quarter period ending on the last day
of each fiscal quarter thereafter |
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1.05 : 1.00 |
(c) Minimum Cash, Cash Equivalents and Short-Term Investments. Cause the aggregate book
value of all cash, cash equivalents and short-term investments of the Borrowers and their Subsidiaries as of the end of each fiscal quarter of HTI (commencing with the fiscal quarter ending on or about December 31, 2015), determined on a
consolidated basis in accordance with GAAP, less the aggregate amount of all Revolving Advances outstanding as of the end of such fiscal quarter, to be not less than $25,000,000, provided, however, that not less than $15,000,000 of
such amount of cash, cash equivalents and short-term investments shall be held in deposit accounts and/or investment accounts maintained with the Agent.
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3. Conditions of Effectiveness. This Amendment shall become effective upon satisfaction of
the following conditions precedent. Agent shall have received:
(a) a copy of this Amendment executed by Borrowers, Agent and Lenders; and
(b) an amendment fee of $50,000 which shall be charged by Agent to Borrowers Account.
4. [Reserved.]
5.
Representations and Warranties. Each Borrower hereby represents and warrants as follows:
(a) This Amendment and the Loan
Agreement, as amended hereby, constitute legal, valid and binding obligations of Borrowers and are enforceable against Borrowers in accordance with their respective terms (except as such enforceability may be limited by any applicable bankruptcy,
insolvency, moratorium or similar laws affecting creditors rights generally or general principles of equity).
(b) Upon the
effectiveness of this Amendment, each Borrower hereby reaffirms all covenants, representations and warranties made in the Loan Agreement to the extent the same are not amended hereby and agrees that all such covenants, representations and warranties
shall be deemed to have been remade as of the effective date of this Amendment.
(c) The execution, delivery and performance of this
Amendment and all other documents in connection therewith has been duly authorized by all necessary corporate action on the part of the Borrowers, and do not contravene, violate or cause the breach of any agreement, judgment, order, law or
regulation applicable to any Borrower.
(d) Upon the effectiveness of this Amendment, no Event of Default or Default has occurred and is
continuing.
(e) No Borrower has any defense, counterclaim or offset with respect to the Loan Agreement.
6. Representation by Agent. Agent hereby represents that, as of the date hereof, PNC Bank, National Association is the only Lender
party to the Loan Agreement.
7. Effect on the Loan Agreement.
(a) Upon the effectiveness of this Amendment, each reference in the Loan Agreement to this Agreement, hereunder,
hereof, herein or words of like import shall mean and be a reference to the Loan Agreement as amended hereby.
(b)
Except as specifically amended herein, the Loan Agreement, and all other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect, and are hereby ratified and confirmed.
(c) Except as otherwise expressly contemplated hereby, the execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right,
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power or remedy of Agent or Lenders, nor constitute a waiver of any provision of the Loan Agreement, or any other documents, instruments or agreements executed and/or delivered under or in
connection therewith.
(d) This Amendment shall be an Other Document for all purposes under the Loan Agreement.
8. Release. The Borrowers hereby acknowledge and agree that: (a) to their knowledge neither they nor any of their Subsidiaries
have any claim or cause of action against Agent or any Lender (or any of Agents or any Lenders Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Loan Agreement or the Other Documents and (b) to
their knowledge Agent and each Lender have heretofore properly performed and satisfied in a timely manner all of their respective obligations to the Borrowers under the Loan Agreement and the Other Documents. Notwithstanding the foregoing, Agent and
each Lender wish (and the Borrowers agree) to eliminate any possibility that any past conditions, acts, omissions, events or circumstances would impair or otherwise adversely affect any of Agents or such Lenders rights, interests,
security and/or remedies under the Loan Agreement and the Other Documents. Accordingly, for and in consideration of the agreements contained in this Amendment and other good and valuable consideration, the Borrowers (for themselves and their
respective Subsidiaries and the successors, assigns, heirs and representatives of each of the foregoing) (each a Releasor and collectively, the Releasors) do hereby fully, finally, unconditionally and
irrevocably release and forever discharge Agent, each Lender and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (each a Released Party and collectively, the Released
Parties) from any and all debts, claims, obligations, damages, costs, attorneys fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, whether known or unknown, contingent or fixed, direct or
indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of
any act, omission or thing whatsoever done or omitted to be done, except for a Released Partys gross negligence or willful misconduct as finally determined by a court of competent jurisdiction, prior to the date hereof arising out of,
connected with or related in any way to the Loan Agreement or any Other Document, or any act, event or transaction related or attendant thereto, or Agents or any Lenders agreements contained therein, or the possession, use, operation or
control in connection therewith of any of the assets of the Borrowers, or the making of any advance thereunder, or the management of such advance or the Collateral.
9. Governing Law. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns and shall be governed by and construed in accordance with the laws of the State of New York.
10. Costs and Expenses.
Borrowers hereby agree to pay the Agent, on demand, all reasonable costs and expenses (including reasonable attorneys fees and legal expenses) incurred by Agent in connection with this Amendment and any instruments or documents contemplated
hereunder.
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11. Headings. Section headings in this Amendment are included herein for convenience of
reference only and shall not constitute a part of this Amendment for any other purpose.
12. Counterparts; Electronic Transmission.
This Amendment may be executed by the parties hereto in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same agreement. Any signature delivered by a party by
facsimile transmission or other electronic transmission (including transmission of a PDF file) shall be deemed to be an original signature hereto.
[Signature Page to Follow]
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IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first written
above.
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HUTCHINSON TECHNOLOGY INCORPORATED |
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By: |
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/s/ David P. Radloff |
Name: |
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David P. Radloff |
Title: |
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Vice President and |
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Chief Financial Officer |
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PNC BANK, NATIONAL ASSOCIATION, as Agent and Lender |
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By: |
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/s/ Victor Alarcon |
Name: |
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Victor Alarcon |
Title: |
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Senior Vice President |
Signature Page to Amendment No. 9 to Revolving Credit and Security Agreement
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