Company: MRCY
Filing Date: 2025-11-04
Form Type: 8-K
Source: 0001049521-25-000060
Chunk: 1

Company: MERCURY SYSTEMS INC
Filing Date: 2025-11-04
Form: 8-K
Item: Item 1.01
Chunk 1
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 Amended Credit Agreement bear interest, at the Company’s option, at floating rates tied to SOFR or the prime rate plus an applicable percentage in the case of dollar denominated loans or, in the case of certain other currencies, such alternative floating rates as agreed. The interest rate applicable to outstanding loans is established pursuant to a pricing grid based on the Company’s total net leverage ratio.

In addition to interest on the aggregate outstanding principal amounts of any borrowings, the Company also pays a quarterly commitment fee on the unutilized commitments under the new revolving credit facility, which fee is established pursuant to a pricing grid based on the Company’s total net leverage ratio. The Company also pays customary letter of credit and agency fees.

Permitted Receivables Factoring

The Amended Credit Agreement permits up to $100.0 million in receivables factoring transactions, subject to no default or event of default at the time such factoring transaction is closed.

Covenants and Events of Default

The Amended Credit Agreement provides for customary negative covenants, including, among other things and subject to certain significant exceptions, restrictions on the incurrence of debt or guarantees, the creation of liens, the making of certain investments, loans and acquisitions, mergers and dissolutions, the sale of assets including capital stock of subsidiaries, the payment of dividends, the repayment or amending of junior debt, altering the business conducted, engaging in transactions with affiliates and entering into agreements limiting subsidiary dividends and distributions. The Amended Credit Agreement also requires the Company to comply with certain financial covenants, including a quarterly minimum consolidated cash interest charge ratio test, a quarterly maximum consolidated total net leverage ratio test, and upon the New Financial Covenant Trigger, a quarterly maximum senior secured net leverage ratio test.

The Amended Credit Agreement also provides for customary representations and warranties, affirmative covenants and events of default (including, among others, the failure to make required payments of principal and interest, certain insolvency events, and an event of default upon a change of control). If an event of default occurs, the lenders under the Amended Credit Agreement will be entitled to take various actions, including the termination of unutilized commitments, the acceleration of amounts outstanding under the Amended Credit Agreement, and all actions permitted to be taken by a secured creditor.

Guarantees and Security

The Company’s obligations under the Amended Credit Agreement are required to be guaranteed by certain of the Company’s material domestic wholly-owned restricted subsidiaries (the “ Guarantors”). The obligations of both