Item 1.01 Entry into a Material Definitive Agreement
On
Term Loan A-1
The Loan Agreement continues certain aspects of the original
Term Loan A-2: The Loan Agreement adds an additional term loan in the amount of
The Company's obligations under the Loan Agreement are jointly and severally guaranteed by all existing and future domestic subsidiaries of the Company, subject to certain exceptions. Obligations under the Loan Agreement may be declared due and payable upon the occurrence of certain events of default, as defined in the Loan Agreement, including failure to pay any obligations when due and payable, failure to comply with any covenant or representation of any loan document, any change of control, cross-defaults and certain other events as set forth in the Loan Agreement, with grace periods in some cases.
The Loan Agreement contains restrictive covenants usual and customary for loans of its type, which include, with specified exceptions, limitations on the ability of the Company and its subsidiaries to engage in certain business activities, incur debt, have liens, pay dividends or make other distributions, enter into affiliate transactions, consolidate, merge or acquire or dispose of assets, and make certain investments, acquisitions and loans. The Loan Agreement also requires the Company to satisfy certain financial covenants including minimum EBITDA and minimum tangible net worth which apply to both terms loans described above.
The foregoing description of the Loan Agreement is not complete and is qualified in its entirety by the terms and provisions of the Loan Agreement, a copy of which is filed herewith as Exhibit 10.1 and is incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation
On
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Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description 10.1 Second Amended and Restated Loan and Guaranty Agreement as ofJanuary 20, 2023 by and amongSeneca Foods Corporation ,Seneca Foods, LLC ,Seneca Snack Company ,Green Valley Foods, LLC as Borrowers and Certain Subsidiaries of Borrowers as Guarantors andFarm Credit East, ACA as Lender (filed herewith) 104 Cover Page Interactive Data File (embedded within Inline XBRL document)
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