Key Tronic Corporation Announces New Credit Facilities

Financing Arrangement - Key Tronic Corporation has entered into a new financing arrangement with the Bank of Montreal and Callodine Commercial Finance, extending and increasing access to working capital through December 2029, with up to $143 million available [1] - The new credit agreements replace the previous asset-based line of credit with Bank of America, which was set to expire in December 2025 [1] - The company expects to write off approximately $0.9 million in unamortized capitalized loan fees in connection with these agreements [1] Management Commentary - The Chief Financial Officer, Tony Voorhees, expressed excitement about the updated financing arrangements, indicating that it significantly enhances access to working capital and addresses liquidity for long-term growth plans [2] - The new facilities are anticipated to lower interest expenses and provide greater financial flexibility moving forward [2] Company Overview - Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from facilities in the United States, Mexico, China, and Vietnam [2] - The company provides full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution to its customers, which include some of the world's leading original equipment manufacturers [2]