Key Tronic Corporation Closes on New Credit Facility to Aid With Expected Growth - Seite 3

The Loan Agreement contains financial covenants as long as commitments or obligations are outstanding under the Loan Agreement, requiring the Company to maintain:  (i) a fixed charge coverage ratio of at least 1.25 to 1.0, measured monthly on a trailing 12-month basis; and (ii) a cash flow leverage ratio of no greater than 6.00 to 1.00, which may be subject to adjustments for COVID-19 related cash expenses as approved by the Bank, measured monthly on a trailing 12-month basis.  In addition, the Loan Agreement contains a number of other covenants that, among other things:  (x) grant certain inspection rights to the Bank; (y) limit or restrict the Company’s and its subsidiaries’ cash management; and (z) limit or restrict the ability of the Company and its subsidiaries to incur additional liens, make acquisitions or investments, incur additional indebtedness, engage in mergers, consolidations, liquidations, dissolutions, or dispositions, pay dividends or other restricted payments, prepay certain indebtedness, engage in transactions with affiliates, and use proceeds. 

In connection with entering into and as required by the Loan Agreement, the Company also entered into a $5 million equipment lease loan arrangement with the Bank relating to the Company’s existing U.S. manufacturing equipment, which arrangement requires monthly payments through August 2025 (the “Equipment Loan Arrangement”).

Other than the Loan Agreement, Credit Facility, and 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.

CONTACTS:	Brett Larsen	Michael Newman
	Chief Financial Officer	Investor Relations
	Keytronic Corporation	StreetConnect
	[phone]	[phone]