Company: KEQU
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0000055529-25-000013
Chunk: 55

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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 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's International subsidiaries had a balance outstanding at April 30, 2024 of $99,000 in short-term borrowings related to overdraft protection and short-term loan arrangements. 

I. Sale-Leaseback Financing Transaction

On December 22, 2021, the Company entered into an Agreement for Purchase and Sale of Real Property with CAI Investments Sub-Series 100 LLC, a Nevada limited liability company (the "Buyer"), for the Company’s headquarters and manufacturing facilities located at 2700 West Front Street in Statesville, North Carolina (the "Sale Agreement").The Sale Agreement was finalized on March 24, 2022 and coincided with the Company and CAI Investments Medical Products