SkyWater Technology Secures Loan Amendment, Extending Maturity Date and Increasing Revolving Facility

SkyWater Technology, Inc. (NASDAQ: SKYT) made significant financial moves on November 19, 2024, as detailed in a recent 8-K filing with the Securities and Exchange Commission. The company, along with its subsidiaries – SkyWater Technology Foundry, Inc., SkyWater Federal, LLC, and SkyWater Florida, Inc., entered into an Amendment No. 1 to Loan and Security Agreement with Siena Lending Group LLC and other financial institutions.

This Amendment, effective from November 19, 2024, alters a previous Loan and Security Agreement dated December 28, 2022. Among the key changes, the scheduled maturity date of the revolving loan commitment was extended from December 28, 2025, to December 31, 2028. Furthermore, the maximum revolving facility amount was increased from $100 million to $130 million, allowing for more financial flexibility. Additionally, a $30 million incremental facility remains available, subject to specific conditions outlined in the Loan Agreement.

The borrowing base was also modified, allowing the Borrowers to take advantage of a capex loan. Following the Amendment, adjustments were made to the equipment advance rate and the equipment sublimit, providing clearer financial terms for the involved parties. The applicable margin, tied to the fixed charge coverage ratio, saw revisions as per the amended agreement.

Changes to the definition of EBITDA were agreed upon, introducing newly specified amounts that can be added back to net income, up to a specified limit. The EBITDA schedule for relevant periods was removed under this revised definition. The full text of the Amendment, attached as Exhibit 10.1 to the filing, provides more detailed information regarding these changes.

This development underscores SkyWater Technology’s proactive approach to optimizing its financial structure and enhancing its liquidity position.

The company filed the necessary financial statements and exhibits to complement the report, further solidifying its commitment to transparency and compliance in financial matters. With these strategic financial adjustments, SkyWater Technology aims to strengthen its financial foundation for future growth and operational excellence.END

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read SkyWater Technology’s 8K filing here.

About SkyWater Technology

SkyWater Technology, Inc, together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, micro-electromechanical systems, and rad-hard integrated circuits.