Item 1.01 Entry into a Material Definitive Agreement.
Effective on March 21, 2016, Bel Fuse Inc., a New Jersey corporation ("Bel" or the "Company"), entered into a Second Amendment Agreement (the "Amendment") among the Company, the Lenders defined in the Credit Agreement (defined below) and KeyBank National Association, as administrative agent for the Lenders (the "Agent", and collectively with the Company and the Lenders, the "Loan Parties"). The Amendment modifies the Loan Parties' Credit and Security Agreement dated as of June 19, 2014, as amended and restated as of June 30, 2014 (as amended, the "Credit Agreement").
The Amendment serves in pertinent part to modify (i) the date by which the Company is obligated to make excess cash flow prepayments in 2016 on account of excess cash flow accrued for fiscal year 2015, (ii) the method of application of mandatory and voluntary prepayments related to the Company's loans and (iii) the maximum leverage ratio of the Company allowed under the Credit Agreement for the period from the effective date of the Amendment through September 2017. The leverage ratio becomes more restrictive at set intervals during that period.
A copy of the Amendment is filed as an Exhibit to this Form 8-K, and is incorporated herein.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 above is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit 10.1– Second Amendment Agreement, dated March 21, 2016.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.