Item 1.01 Entry into a Material Definitive Agreement.
On December 18, 2020, TechPrecision Corporation (the "Company"), through its
wholly owned subsidiary Ranor, Inc. ("Ranor"), entered into a Fourth
Modification to Loan Agreement and First Modification and Allonge to Amended and
Restated Promissory Note (the "Modification") with Berkshire Bank ("Berkshire").
The Modification amends and modifies the Loan Agreement between Ranor and
Berkshire dated December 20, 2016, as amended by the First Modification to Loan
Agreement dated June 6, 2018, the Second Modification to Loan Agreement and
First Modification and Allonge to Promissory Note dated December 19, 2018 and
the Third Modification to Loan Agreement dated December 23, 2019 (as amended,
the "Loan Agreement"). The Modification also amends the Amended and Restated
Promissory Note dated December 23, 2019 (the "Line of Credit Note") made by
Ranor in favor of Berkshire in the stated principal amount of $3,000,000. Under
the terms of the Loan Agreement and the Line of Credit Note, Ranor borrowed
$2.85 million under the term loan facility (the "Term Loan") and was entitled to
borrow up to $3,000,000 on a revolving basis (the "Revolver Loan"). As of the
date of the Modification, there was approximately $2.5 million in remaining
principal outstanding under the Term Loan and were no amounts outstanding under
the Revolver Loan.
Under the Modification, Ranor and Berkshire agreed to revise the minimum
interest rate payable on the Revolver Loan. Under the Line of Credit Note, the
Company can elect to pay interest at an adjusted LIBOR-based rate or an
"Adjusted Prime Rate." Under the Modification, the minimum adjusted LIBOR-based
rate is 2.75% and the "Adjusted Prime Rate" is the greater of (i) the Prime Rate
minus 70 basis points or (ii) 2.75%. Interest-only payments on advances made
under the Revolver Loan will continue to be payable monthly in arrears. The
maturity date of the Revolver Loan was also extended to December 20, 2022. All
other material terms of the Loan Agreement and Line of Credit Note were
Other than in respect of the Loan Agreement, the promissory notes made
thereunder and the related security documents, there is no material relationship
between Ranor or the Company, on the one hand, and Berkshire, on the other hand.
The description of the Modification is qualified in its entirety by reference to
the full text of the Modification, a copy of which is attached hereto as Exhibit
10.1 and is incorporated by reference herein.
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 hereof is incorporated by reference into
this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
10.1 Fourth Modification to Loan Agreement and First Modification
and Allonge to Amended and Restated Promissory Note, dated
December 18, 2020, between Ranor, Inc. and Berkshire Bank
© Edgar Online, source Glimpses