Item 1.01. Entry into a Material Definitive Agreement
Effective as of February 6, 2023, ADAC-STRATTEC, LLC ("ADAC-STRATTEC"), a
majority owned subsidiary of STRATTEC SECURITY CORPORATION (the "Company"),
entered into a ninth amendment (the "Amendment") to its June 28, 2012 Credit
Agreement, as previously amended by an Amendment No. 1 dated January 22, 2014,
an Amendment No. 2 dated June 25, 2015, an Amendment No. 3 dated April 27, 2016,
an Amendment No. 4 dated June 26, 2017, an Amendment No. 5 dated March 27, 2018,
an Amendment No. 6 dated December 30, 2018, an Amendment No. 7 dated October 28,
2019 and an Amendment No. 8 dated June 1, 2021 (collectively, the "ADAC-STRATTEC
Credit Agreement"), with BMO Harris Bank N.A., as lender. The Amendment
modifies the benchmark for purposes of determining interest on borrowings under
the credit facility and adopts an interest rate based upon the forward looking
term secured overnight financing rate (SOFR) as administered by the Federal
Reserve Bank of New York (or a successor administrator of the secured overnight
financing rate). Under the Amendment, interest will be at varying rates based,
at ADAC-STRATTEC's option, on Term SOFR plus 1.35 percent or the bank's base
rate, which generally is tied to the prime rate. The Amendment also modifies
the calculation of the fixed charge coverage ratio and the required level of
minimum net worth (increased to $40 million) for all future periods under the
ADAC-STRATTEC Credit Facility. The ADAC-STRATTEC Amendment is attached hereto
as Exhibit 10.1 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
As described above under Item 1.01, on February 6, 2023, ADAC-STRATTEC entered
into an amendment to its credit agreement with BMO Harris Bank N.A. modifying
the benchmark interest rate, amending the calculation of the fixed charge
coverage ratio and the required level of minimum net worth and making certain
other changes thereto described in the Amendment attached hereto.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit 10.1 - Amendment No. 9 to ADAC-STRATTEC Credit Agreement, dated as
of February 6, 2023, between ADAC-STRATTEC, LLC and BMO Harris Bank N.A., as
lender.
104 - Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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