OPTEX SYSTEMS HOLDINGS INC: Entering into a Material Definitive Agreement, Creating a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (Form 8-K)

Section 1.01 Entering into a Material Definitive Agreement.

On April 12, 2022, Optex Systems Holdings, Inc.a Delaware company (the “Company”), and its subsidiary, Optex Systems, Inc. (“Optex”, and together with the Company, the “Borrowers”), have entered into an Amended and Restated Loan Agreement (the “Loan Agreement”) with PNC Bank, National Associationsuccessor of BBVA United States (the “Lender”), pursuant to which the Borrowers’ existing revolving line of credit was reduced by $2.25 million for $1.125 millionand the due date has been extended by April 15, 2022 for April 15, 2023. The outstanding obligations under the credit facility will bear interest at a rate equal to the lender’s prime rate less 0.25%.

The loan agreement contains customary events of default and negative covenants, including but not limited to those governing indebtedness, liens, fundamental changes, investments and restricted payments. The loan agreement also requires borrowers to maintain a fixed charge coverage ratio of at least 1.25:1. The credit facility is secured by substantially all of the operating assets of the borrowers as collateral. The obligations of the Borrowers under the credit facility may be accelerated upon the occurrence of an event of default as defined in the Loan Agreement.

The above summary of the Loan Agreement and the transactions contemplated by it is qualified in its entirety by reference to the text of this agreement, a copy of which is attached hereto as Schedule 10.1 and is incorporated by reference herein.

Item 2.03 Creation of a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant.

As described in point 1.01 above, on April 12, 2022, the Company’s existing revolving credit facility was amended and restated. The terms of the Credit Facility disclosed in Section 1.01 are incorporated herein by reference.

Item 9.01 Financial statements and supporting documents.

  (d)  Exhibits:

  10.1   Amended and Restated Loan Agreement dated as of April 12, 2022 by and
       among Optex Systems Holdings, Inc., Optex Systems, Inc., and PNC Bank,
       National Association
  104  Cover Page Interactive Data File (embedded within the Inline XBRL
       document)

© Edgar Online, source Previews