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Actionable news in SYPR: Sypris Solutions, Inc.,

Entry into a Material Definitive

On October 30, 2015, the Company entered into two new senior secured financing arrangements which replaced the Company's Revolving Credit and Security Agreement with PNC Bank, N.A. (PNC) that matured on October 30, 2015.

The two new financing arrangements (collectively, the New Loan Agreements) consist of (1) an Amended and Restated Loan and Security Agreement (Revolving Credit Agreement) with Siena Lending Group LLC (Siena) providing for principal borrowings of up to $15,000,000 on a revolving basis, subject to certain conditions described below, and (2) a Loan and Security Agreement with Great Rock Capital Partners Management, LLC (GR) providing for a term loan in the principal amount of $12,000,000 (Term Loan). Interest will accrue on the Revolving Credit Agr eement at an annual rate of 2.50% above a Base Rate equal to the greatest of the Prime Rate published in the Wall Street Journal, the Federal Funds Rate plus 0.5%, or 3.25%, and on the Term Loan at an annual rate of 9% above the same Base Rate. The Company must also pay an unused facility fee (currently set at 0.5%) to Siena under the Revolving Credit Agreement if utilization under the facility is less than the maximum borrowing availability, among other fees due to each lender.

Loans made under the New Loan Agreements will mature and the commitments thereunder will terminate in October 2018. Specific borrowing availability levels under the New Loan Agreements are determined by a borrowing base collateral calculation that includes designated percentages of eligible inventory values and accounts receivable for the Revolving Credit Agreement, and, in the case of the Term Loan, designated percentages of real estate, machinery and equipment valuations, in each case less certain reserves and subject to certain other adjustments...


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