Company: IPGP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001111928-25-000168
Chunk: 31

Company: IPG PHOTONICS CORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 of letters of credit. The new facility replaced the previous $75,000 U.S. revolving line of credit with a scheduled maturity date of June 30, 2025. At September 30, 2025, there were no amounts drawn or guarantees issued on the credit facility. At December 31, 2024, there were no amounts drawn on the prior credit facility, and there were $2,103 of guarantees issued, which reduced the amount of the availability under the facility. The remaining availability under the new line was $200,000 at September 30, 2025. Under the credit agreement, the Company is required to meet certain financial covenants, which are tested quarterly and include an interest coverage ratio and a net leverage ratio. The interest coverage covenant requires the Company maintain a trailing twelve-month ratio of consolidated EBITDA to consolidated interest expense on all obligations that is at least 3.0 times. The net leverage covenant requires the Company maintain a trailing twelve-month ratio, which is the sum of all indebtedness for borrowed money on a consolidated basis, less cash and available marketable securities not classified as long-term investments in the U.S. in excess of $50,000 up to a maximum of $500,000, to consolidated EBITDA that is less than 3.0 times.  The Company was in compliance with the financial covenants as of September 30, 2025.In addition to the financial covenants, the Company's credit agreement contains additional customary events of default, including non-payment of principal, interest or fees, violation of covenants, cross default to certain other indebtedness, invalidity of any loan document, material judgments, bankruptcy and insolvency events and change of control, subject, in certain instances, to cure periods. Upon the occurrence of an event of default, the lenders may elect to declare amounts outstanding under the credit agreement immediately due and payable.In addition, the Company maintains Euro lines of credit with a total principal amount of €7,400 ($8,685 and $6,751 as of September 30, 2025 and December 31, 2024, respectively), which are available to certain European subsidiaries. At September 30, 2025 and December 31, 2024, there were no amounts drawn on the Euro lines of credit, and there were $3,680 and $1,533, respectively, of guarantees issued against the facilities, which reduces the amount of the availability under the facilities.Additionally, the