ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT OnSeptember 3, 2021 ,Key Tronic Corporation (the "Company") and certain of its domestic subsidiaries entered into the Second Amendment (the "Amendment") to the Loan, Guaranty, and Security Agreement, dated as ofAugust 14, 2020 (the "Loan Agreement"), withBank of America, N.A ., as agent, sole lead arranger, sole bookrunner, and lender (the "Bank"). The Amendment increases the Company's credit facility from$93 million to$120 million , subject to the Company's borrowing base, and removed the provision permitting the Company to increase the aggregate amount of the credit facility by up to$25 million . The Amendment also extends the maturity date toSeptember 3, 2026 . Loans and letters of credit under the Loan Agreement, as amended, are not permitted to exceed the lesser of (i) the aggregate commitment under the credit facility and (ii) a borrowing base, which is determined by, among other things, specified levels of certain eligible accounts receivable and eligible inventory of the Company and certain of its subsidiaries, subject to certain reserve requirements, as further described in the Loan Agreement. Based on the Company's borrowing base and reserve requirements immediately following the closing of the Amendment, there was approximately$17 million available under the credit facility. Except for the changes described above, the terms and the conditions of the Loan Agreement remain substantially unchanged. Other than the Loan Agreement, Amendment, credit facility, and related equipment loan arrangement (and certain related banking relationships and arrangements), there are no material relationships as of the date hereof between the Company or any of its affiliates and the Bank. The foregoing description is not complete and is qualified in its entirety by reference to the Loan Agreement and the Amendment, which are filed herewith as Exhibits 10.1 and 10.2 and 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 required by this Item is included in Item 1.01 above and is incorporated herein by reference. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (d)Exhibits Exhibit Number Description 10.1 Loan and Security Agreement, dated August 14 , 2020, among the Company, Bank of America, N.A, and certain other parties , incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed August 17, 2020 10.2 Second Amendment to Loan and
Security Agreement, dated September
3 , 2021, among the Company,Bank of America, N.A , and certain other parties 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document 2
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