Item 1.01 Entry into a Material Definitive Agreement.
OnMay 19, 2023 ,Virco Mfg. Corporation (the "Company") andVirco Inc. , a wholly owned subsidiary of the Company (together with the Company, the "Borrowers"), entered into Amendment No. 3 to Amended and Restated Revolving Credit and Security Agreement ("Amendment No. 3") withPNC Bank, National Association , as administrative agent and lender ("PNC"), with an effective date ofMay 5, 2023 . Amendment No. 3 amended the Amended and Restated Revolving Credit and Security Agreement, datedSeptember 28, 2021 (the "Credit Agreement"), by and among PNC and the Borrowers and the secured revolving line of credit provided to the Borrowers under the Credit Agreement (the "Revolving Credit Facility") to reflect the following material changes:
i.Maximum size of the Revolving Credit Facility has been increased to
ii.Increase in the total inventory sublimit under the Credit Agreement to$35,000,000 and increase in the ATS inventory sublimit to$15,000,000 during the months of May through August of 2023; iii.The Company will pay an amendment fee of$50,000 , which is 0.67% on the incremental line increase of$7,500,000 , and
iv.Increase in the Applicable Margin (as defined in the Credit Agreement) of 25 basis points.
The foregoing description of Amendment No. 3 is qualified in its entirety by the full text of Amendment No. 3, a copy of which is filed as an exhibit to this report 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 above in Item 1.01 is hereby incorporated into this Item 2.03 by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit No. Description Exhibit 1 0. 4 Amendment No. 3 to Amended and
Restated Revolving Credit and Security
Agreement, effective as ofMay 5 ,
2023, by and among Virco Mfg.
Corporation andVirco, Inc. , as
borrowers, and PNC Bank, National
Association, as lender and
administrative agent.
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