Company: KEQU
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0000055529-25-000013
Chunk: 28

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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% per annum and will mature on November 1, 2027, at which time the outstanding principal amount and all unpaid accrued interest will become due and payable by the Company. The Company accrued $463,000 in PIK interest for the three-month period ended January 31, 2025.The Seller Notes may be prepaid, in full or in part, any time without prepayment penalty, premium, or other fee; subject, however, to each seller’s obligation not to accept any prepayment under the Seller Notes until all Secured Claims (as defined in the Seller Notes) have been paid to PNC. The Company’s obligations under the Seller Notes are secured by a security agreement entered into between the Company and each shareholder of Nu Aire immediately prior to the completion of the acquisition (the "Sellers"), pursuant to which the Sellers have the option to cause the Company to issue shares of the Company’s common stock to the Sellers, solely upon the occurrence of an event of default.The rights of the Sellers to receive payments under the Seller Notes are subordinate to the rights of PNC under the Loan Agreement pursuant to a separate subordination agreement that the Sellers entered into with PNC on November 1, 2024 in connection with the Transaction.Mid Cap Revolving Credit FacilityAt April 30, 2024, advances of $3.0 million were outstanding under the Company's previous revolving credit facility with Mid Cap Funding IV Trust (the "Mid Cap Revolving Credit Facility"). The amounts available under the Mid Cap Revolving Credit Facility was $11.6 million at April 30, 2024. The borrowing rate under the Mid Cap Revolving Credit Facility was 9.54% as of April 30, 2024. At April 30, 2024, the Company was in compliance with all of the financial covenants under the Mid Cap  Revolving Credit Facility.On September 30, 2024, the Company terminated the Mid Cap Revolving Credit Facility. At the time of termination, there was a $3.0 million balance outstanding under the Mid Cap Revolving Credit Facility, which was paid off in full as part of the termination. The Company incurred $0.5 million in related expenses as a result of the termination. International Subsidiaries Short-Term Borrowings

The Company's International subsidiaries had a balance outstanding of $1,131,000 in short-term borrowings related to overdraft protection and short-term loan arrangements at January 31, 2025. The Company