Company: IPGP
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001111928-25-000023
Chunk: 125

Company: IPG PHOTONICS CORP
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 125
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 NoteInterest RateMaturitySecurityU.S. Revolving Line of Credit (1)$75.0 millionSOFR plus 0.9% to 1.6%, depending on our performanceApril 2025UnsecuredEuro Credit Facility (Germany) (2)Euro 5.0 million($5.2 million)€STR rate plus 0.97%December 2028Unsecured, guaranteed by parent companyEuro Facility (3)Euro 1.5 million($1.6 million)4.3%September 2025Common pool of assets of Italian subsidiary

(1)  This facility is available to certain foreign subsidiaries in their respective local currencies. At December 31, 2024, there were no amounts drawn on this line, however, there were $2.1 million of guarantees issued against the line which reduces total availability.

(2)  This facility is available to certain foreign subsidiaries in their respective local currencies. At December 31, 2024, there were no amounts drawn on this line, however, there were $1.5 million of guarantees issued against the line which reduces total availability.

(3)  At December 31, 2024, there were no drawings. This facility renews annually.

40

Our largest committed credit line is with Bank of America N.A. in the amount of $75.0 million, which is not syndicated. We are required to meet certain financial covenants associated with our U.S. revolving line of credit. These covenants, tested quarterly, include an interest coverage ratio and a funded debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") ratio. The interest coverage covenant requires that we maintain a trailing twelve-month ratio of EBITDA to interest on all obligations that is at least 3.0:1.0. The funded debt to EBITDA covenant requires that the sum of all indebtedness for borrowed money on a consolidated basis be less than three times our trailing twelve months EBITDA. Funded debt is decreased by our cash and available marketable securities not classified as long-term investments in the U.S. in excess of $50 million up to a maximum of $500 million. We were in compliance with all such financial covenants as of and for the three months ended December 31, 2024. 

See Note 12, "Financing Arrangements" in the notes to the consolidated financial statements for further information about our facilities.  

The following